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Mcressy
Level 1

Partnership start up costs

How do you record this: 2 partners went into business and 1 partner paid for all of the organizational and start up costs out of their personal account. The other partner gave the 1st partner a check for his half of the costs.

They now have a business checking account.

Solved
Best answer January 20, 2021

Best Answers
ShiellaGraceA
QuickBooks Team

Partnership start up costs

Thanks for posting here today, @Mcressy.

 

You'll want to set up two equity account for the business partners. Then, record the business expense you paid for with personal funds.

 

Here's how to create an equity account:

 

  1. Go to Accounting.
  2. Select Chart of Accounts.
  3. Click New.
  4. Under Account Type, select Equity.
  5. On the Detail Type menu, select Owner's Equity.
  6. Enter the name of your new account.
  7. Click Save and Close.

 

After creating an account, record the expense using a journal entry.

 

  1. Go to + New. Then, choose Journal entry.
  2. On the first line, select the expense account for the purchase.
  3. Enter the purchase amount in the Debits column.
  4. On the second line, select Partner's equity or Owner's equity.
  5. Enter the same purchase amount in the Credits column.
  6. Click Save and close.

 

Want more details? Check out these links below to help you along the way.

 

 

Also, I've added this reference for a compilation of articles you can use to get a better view of your business's financial status: Financial Report for QuickBooks Online.

 

If you have other questions of concerns, please let me know. I'm always here to assist you every step of the way. Take care and stay safe.

View solution in original post

1 Comment 1
ShiellaGraceA
QuickBooks Team

Partnership start up costs

Thanks for posting here today, @Mcressy.

 

You'll want to set up two equity account for the business partners. Then, record the business expense you paid for with personal funds.

 

Here's how to create an equity account:

 

  1. Go to Accounting.
  2. Select Chart of Accounts.
  3. Click New.
  4. Under Account Type, select Equity.
  5. On the Detail Type menu, select Owner's Equity.
  6. Enter the name of your new account.
  7. Click Save and Close.

 

After creating an account, record the expense using a journal entry.

 

  1. Go to + New. Then, choose Journal entry.
  2. On the first line, select the expense account for the purchase.
  3. Enter the purchase amount in the Debits column.
  4. On the second line, select Partner's equity or Owner's equity.
  5. Enter the same purchase amount in the Credits column.
  6. Click Save and close.

 

Want more details? Check out these links below to help you along the way.

 

 

Also, I've added this reference for a compilation of articles you can use to get a better view of your business's financial status: Financial Report for QuickBooks Online.

 

If you have other questions of concerns, please let me know. I'm always here to assist you every step of the way. Take care and stay safe.

View solution in original post

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