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Two how-to Transaction Questions

I have a question on how to enter two different types of transactions in Quickbooks (online version).

 My business is an LLC Partnership.  Myself 98% owner, and my Mom and Dad 1% each.  It's an auto repair shop. 

 

First question:  I paid my Dad last Friday the amount that he earned.  But I have no idea how to enter this in Quickbooks.  Is this a Disbursement?  

 

Secondly, I want to take money from the business checking account (the only account I have for the business), and fund my personal SEP retirement account.  How do I enter this transaction?  This is not a one-time-per-year thing.  I want to do this weekly or monthly.  Just whenever I have some extra income, I want to throw it in my SEP.  

 

Thank you, much.

2 Comments
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Re: Two how-to Transaction Questions

First question:  I paid my Dad last Friday the amount that he earned.  But I have no idea how to enter this in Quickbooks.  Is this a Disbursement?  

 

each owner should have a set of equity accounts, in a partnership when you pay out to a partner that is booked as an equity draw, use that draw account as the expense (reason) on the check.

 

Secondly, I want to take money from the business checking account (the only account I have for the business), and fund my personal SEP retirement account.  How do I enter this transaction?  This is not a one-time-per-year thing.  I want to do this weekly or monthly.  Just whenever I have some extra income, I want to throw it in my SEP.  

 

same answer it is an equity draw

For a company taxed as a sole proprietor (schedule C) or partnership (form 1065), I recommend you have the following for owner/partner equity accounts  (one set for each partner if a partnership)

[name] Equity (do not post to this account it is a summing account)
>> Equity
>> Equity Drawing - you record value you take from the business here
>> Equity Investment - record value you put into the business here

 

Frequent Explorer *

Re: Two how-to Transaction Questions


@Rustler wrote:

First question:  I paid my Dad last Friday the amount that he earned.  But I have no idea how to enter this in Quickbooks.  Is this a Disbursement?  

 

each owner should have a set of equity accounts, in a partnership when you pay out to a partner that is booked as an equity draw, use that draw account as the expense (reason) on the check.

 

Secondly, I want to take money from the business checking account (the only account I have for the business), and fund my personal SEP retirement account.  How do I enter this transaction?  This is not a one-time-per-year thing.  I want to do this weekly or monthly.  Just whenever I have some extra income, I want to throw it in my SEP.  

 

same answer it is an equity draw

For a company taxed as a sole proprietor (schedule C) or partnership (form 1065), I recommend you have the following for owner/partner equity accounts  (one set for each partner if a partnership)

[name] Equity (do not post to this account it is a summing account)
>> Equity
>> Equity Drawing - you record value you take from the business here
>> Equity Investment - record value you put into the business here

 


I have the following equity accounts setup.  Are these correct?  (see image)