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CKIM1993
Level 1

Cash (Cash On Hand) is negative. How to bring this to 0?

Beginner bookkeeper here. I am trying to reconcile the Cash (Cash On Hand) of my client. It is negative. The expenses are contractor payments made before a checking account was opened and payroll. Do I offset the Shareholder’s Equity to bring this to 0? Thank you.

3 Comments 3
Rustler
Level 15

Cash (Cash On Hand) is negative. How to bring this to 0?

Using the word shareholder implies the company is taxed as a corporation, if so then no you do not use shareholder equity

The funds that were spent had to come from somewhere, find out where and deposit the amount needed to bring it to zero

CKIM1993
Level 1

Cash (Cash On Hand) is negative. How to bring this to 0?

Hello, the company is set-up as Partnership. Do I offset this from Owner’s Equity? 

Rustler
Level 15

Cash (Cash On Hand) is negative. How to bring this to 0?

Yes, equity investment

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