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

CKIM1993 · ‎May 12, 2022

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.

Rustler · ‎May 13, 2022

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 · ‎May 13, 2022

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

Rustler · ‎May 14, 2022

Yes, equity investment

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