cancel
Showing results for 
Search instead for 
Did you mean: 
Level 1

Record accidental personal use of business debit card

I read the comments/responses on handling a personal charge on a debit card but I have not found the steps on how to enter or set up the account to handle a personal use of a business debit card. I'm a S Corp and I need the first steps on setting this up in QuickBooks 2016 desktop.
Solved
Best answer 12-10-2018

Accepted Solutions
Highlighted
Anonymous
Not applicable

- If the personal use is by an employee who will pay back...

- If the personal use is by an employee who will pay back the company, create an asset account to track the amount the company is owed and use it on the credit card charge.  Then when you're repaid use the asset account in the deposit to your bank account for the repayment.

- If the owner used the card and will not pay back the company, then this is a reduction in the owner's equity in the company, so use an Equity account set up for draws for the credit card charge.

View solution in original post

4 Comments
Highlighted
Anonymous
Not applicable

- If the personal use is by an employee who will pay back...

- If the personal use is by an employee who will pay back the company, create an asset account to track the amount the company is owed and use it on the credit card charge.  Then when you're repaid use the asset account in the deposit to your bank account for the repayment.

- If the owner used the card and will not pay back the company, then this is a reduction in the owner's equity in the company, so use an Equity account set up for draws for the credit card charge.

View solution in original post

Level 15

It is either Employee loan (other asset) or Shareholder l...

It is either Employee loan (other asset) or Shareholder loan (other asset).

Using the company's funds for non-business = they loaned their funds (asset) to another. That = Other Asset.

Then, getting repaid = Money to bank.

Bank is an asset.

That means repayment of the loan = Asset offset to Asset. Loaned out balance goes down and Bank balance goes up.

Level 15

"I'm a S Corp" "then this is a reduction in the owner's e...

"I'm a S Corp"

"then this is a reduction in the owner's equity"

For a corporation, it is either Employee loan as Asset, or Shareholder Loan as Asset, or Shareholder Distribution as Equity.

It really depends on how large it was, how long a time it will go unpaid, etc.



Level 1

The amount is $38.25. I used my debit card by accident ge...

The amount is $38.25. I used my debit card by accident getting gas

Need to get in touch?

Contact us