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I am looking for a solution to a problem. I have company expenses that were paid by the owners personal funds. How do I record these expenses without actually paying them out of the checking account?
In this case you can record them in the Owner's Equity account register, as in increase to the account, which will increase expenses on the P&L.
I've got the solution you need, @Angie13.
First, let's create a journal entry to record the company expenses that your owners paid with their funds.
Before that, set up these two accounts below:
I'd suggest consulting your accountant to determine the appropriate types for these two accounts. They can also help you assist when creating the journal entry.
Once done, proceed with the steps below.
The screenshot below shows you the last six steps. Repeat the process above for the other owners.
Second, let's record the reimbursement through a check. Make sure to use the clearing account you've created above in the Bank Account drop-down list.
Also, it's a great business practice to avoid mixing company and personal expenses. But there may be times where it's necessary. Thus, I recommend visiting this link for more information: General Overview.
I'll lend a helping hand if you have other concerns. Wishing you and your business continued success while using the program.
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