cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Everything you need to know about banking in QuickBooks Online - Discover more
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.

5 REPLIES 5
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 If you want to show the bank account and equity account impacted only you can do an expense and instead of selecting a product service select the equity account or do a journal impacting the equity  account on line 1 and the bank account on line 2. Then save the journal. This will impact the balance sheet report only. You can check in the chart of accounts and see the transaction, you can easily remove the journal if you decide that is not how you want to record it. 

If you want to impact the expenses and choose an expense account and an equity account on the journal but not the bank account, that will show on the p and l(the expense)and balance sheet (the equity). We'd recommend conferring with an accountant.

Any questions let us know.

Haseeb Abddullah
Level 1

Paying expenses with owner funds

I am using quickbooks desktop as accountant.

I was short with one cheque amount. Owner tranfered the amount in company bank account for that cheque and ask me to deduct this amount from his future bills. Owner use to buy items from company for himself. 

 How do i adjust this amount with his bills.

Ashleigh1
QuickBooks Team

Paying expenses with owner funds

ello Haseeb Abddullah, thanks for posting on this thread, if you have created the cheque then you would need to post the cheque to the Accounts Payable account so that you can use it to pay the bill off and then set the credit so you can then use that.

Need to get in touch?

Contact us