cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Do you have a question about self-assessment or anything else? - Ask it here!
sanitix
Level 1

Paying expenses with owner funds

Hello,

 

How to record expense in QBO and credit the owner's investment account?

What VAT rate should I apply for on owner's investment account category details line on expense registry page.

3 REPLIES 3
EmmaM
QuickBooks Team

Paying expenses with owner funds

Hello Sanitix, Have the set up the investment account in the chart of accounts in Quickbooks? What type of account is it you have set it under? We can't tell you what VAT rate to use you'd need to consult with either your accountant or HMRC however we can advise on the expense transaction itself when we know what is already set up. Thanks

sanitix
Level 1

Paying expenses with owner funds

Thank you for answering. I have created a new Account with Equity as an Account Type and Owner's Equity as a Detail Type.Screen Shot 2021-10-06 at 14.39.42.png

 

Screen Shot 2021-10-06 at 14.57.32.png

 

EmmaM
QuickBooks Team

Paying expenses with owner funds

Hello Sanitix, As you have created an Equity account and as you mentioned it was paying business expenses with owners funds I'm guessing the expense you create you do not want it to impact the bank account, only the expense account, and the equity account, if that is correct then you can do a journal entry on one side impacting the equity account and on the second line impacting the expense itself-for example office admin,(the journal entry can be found in the +symbol in the top left) then save the journal and you can check in the chart of accounts it has impacted the account how you would like you can easily remove the journal if you decide that is not how you want to record it. Any questions let us know.

Need to get in touch?

Contact us