I set up a new company. Set up separate equity account for partner who will be investing capital. Set up new bank account opened. One of the partners is covering expense with his personal card. I want to show that as capital he puts in. I added them to accounts payable to record expenses already. So I need to pay them and debit capital. I need to know how to do that. Also, is this the best way going forward?
I would not use the accounts payable entry at all.
Just like a charge card or cash payment, his paying for an expense is directly entered. A/P, or enter bills should only be used if you get a bill that will not be paid immediately
A simple journal entry is all that is needed debit the expense account and credit partner equity investment
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