I've used my personal Credit card for business purchases (R&D equipment and supplies) (Sep 2018 to Jan 2019) before the formation of the company in NJ and opening a business account (Feb 2019). The understanding was this will be part of my equity contribution to a 2 person LLC partnership. Now that the business is registered and the bank account is open and we started using QB and all purchases go through the business account:
1. How do I enter the purchases made with my personal credit card explained above into QB to reflect my share contribution into the company?
Set up equity accounts for multiple owners or partners
Select the Gear iconon the Toolbar.
Under Your Company, choose Chart of Accounts.
From the Account Type drop-down, select Equity.
From the Detail Typedrop-down, select Owner's Equity or Partner's Equity depending on your situation.
For multiple owners or partners, you can set up separate equity accounts as sub-accounts, like this:
Partner's Equity > Lee's Equity > Contributions
Partner's Equity > Lee's Equity > Distributions
Owner's Equity > Pat's Equity > Contributions
Owner's Equity > Pat's Equity > Distribution
To create a sub-account select the Is sub-account checkbox
Choose the appropriate parent account, which must be the same type as the sub-account. (Note: If you don't want to track contributions and distributions separately, you can omit these sub-accounts. Remember to check with your accountant if you're unsure.)
Name the accounts, then select Save and Close.
Record a business expense paid with personal funds
To record a business expense that was paid for by a partner or owner's personal funds:
Select the Plus icon (+)on the
Under Other,select Journal Entry.
On the first line, specify the appropriate expense Account for the purchase.
Enter the amount of the purchase in the Debit
(Optional) Enter a customer Namet o associate the expense with a customer.
On the second line, in the Account column, enter the Owner's equity or Partner equity.
In the Credit column, enter the amount of the purchase.
(Optional) In the Memo field, add Reimbursable to help you identify the transaction later.