How do you fix mixed expenses between two LLC businesses?

GreenLad · ‎July 26, 2024

For the year of 2023, I have someone who made the mistake of using his cards for whatever expense, mixing between his two businesses as well as his personal expenses.

Assuming we sorted out which expenses are for which, what are you to do with the expenses made to the other business, as well as the personal expenses made? What would I need to do to them, and where would I categorize them?

Accracy Accounting

Credit Card 1 (Legally on LLC 1's name)

Under LLC 1 Books: Post them under Due to/from LLC 2

Under LLC 2 Books: Post JE - Debit (Expenses) and Credit (Due to/from LLC 1)

Credit Card 2 (Legally on LLC 2's name)

Under LLC 2 Books: Post them under Due to/from LLC 1

Under LLC 1 Books: Post JE - Debit (Expenses) and Credit (Due to/from LLC 2)

In both cases personal expenses will be posted to Shareholder Loan Account

Topics

Training

Community

Resources

How do you fix mixed expenses between two LLC businesses?

How do you fix mixed expenses between two LLC businesses?

Need to get in touch?