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becky110
Level 1

Our company became a partner with a group of investors and purchased an investment property. How do I enter my company's portion of the payment for the purchase in QB?

How do I account for my company's funds that was used for the investment in my books?
3 Comments 3
RoseJillB
QuickBooks Team

Our company became a partner with a group of investors and purchased an investment property. How do I enter my company's portion of the payment for the purchase in QB?

I know a way to record an owner's contribution or investment in a business in QuickBooks Online (QBO), @becky110.

 

With QuickBooks, we can track or enter the funds coming from you as an owner, partners, and other owners when starting a business. This is to keep a record of adding capital, to see the total at any time, and to repay the investment. To start working on these transactions, we can start by setting up an owner or partner as a vendor and creating an equity account for the recording of the capital investment.

 

To create them as a vendor, please see the guidelines below:

 

  1. Go to the Expenses menu and select Vendors.
  2. Tap the New Vendor button to create one.
  3. Fill out the necessary details for your vendor profile and click Save.

 

After that, let's move forward to creating your equity account:

 

  1. Go to the Gear icon and select Chart of Accounts (COA).
  2. Hit the New button, and select Equity for the Account Type.
  3. Select Owner's or Partner's Equity from the Detail Type depending on your situation. You can also consult your account if you're unsure.
  4. Lastly, select Save and Close.

 

To begin recording the investment, we can create a bank deposit to be posted to the appropriate equity account. If you have already connected your online banking, we'll only need to categorize the transactions associated with the deposit. Otherwise, we can follow the steps below to manually create a deposit:

 

  1. Tap the + New icon and select Bank Deposit.
  2. In the Account dropdown, select the bank account where the money should be deposited.
  3. Enter the Date where the money has been deposited.
  4. Under the Add funds to this deposit, enter the name of the investor in the Received from section. For the Account, select the equity account we recently created.
  5. Select the Payment method used in the transaction, and enter the investment amount in the Amount field.
  6. Next to it, press Save and Close.

 

That's how we can record an investment, @becky110. Furthermore, we can follow the steps outlined in this article once you're in place to pay it back: Record paying back an investment.

 

Feel comfortable posting your concern in this thread if you need further assistance in managing investments or QuickBooks transactions. The Community always has your back. Take care!

Rainflurry
Level 14

Our company became a partner with a group of investors and purchased an investment property. How do I enter my company's portion of the payment for the purchase in QB?

@becky110 

 

@RoseJillB should not attempt to answer questions like this.  Record the purchase to equity?  And, deposits from an investment to equity?  Yikes!  Just kind of wingin' it, eh? 

 

To record your company's portion, assign the payment made to a fixed asset account called "123 Main St. - 25% Ownership" or whatever name makes the most sense.   

blcrouse
Level 2

Our company became a partner with a group of investors and purchased an investment property. How do I enter my company's portion of the payment for the purchase in QB?

Could you explain further how to set up an investment rental property in Desktop?  Should the real estate loan be set up as a long term liability and then the designated checking account for the rental property be added in QB's to record the downpayments, expenses/utilities, and income/rent?  Or should all transactions be put into an owner's capital investment equity account?

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