Record accidental personal use of business debit card

kbutts52 · ‎December 10, 2018

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.

Anonymous · ‎December 10, 2018

- 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.

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Anonymous · ‎December 10, 2018

- 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.

qbteachmt · ‎December 10, 2018

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.

qbteachmt · ‎December 10, 2018

"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.

kbutts52 · ‎December 10, 2018

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

ShoSho · ‎January 22, 2020

I have an S Corp. The registered owner isn't invovled at this time. The son is running the business and actually does not have any legal rights, at this point. However, he has used the company business card for personal purchases. He does not want to repay and wants this to be reflected as an owner draw, reduction in owner equity or applied as a bonus. He,however is not an owner or even partner. How do I record these personal purchases on the company credit card?

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Record accidental personal use of business debit card