The best way to log this is by creating first a Cash on hand account. That way, we can record the money you withdrew using the transfer feature. Then, create an expense transaction for the 2300.00 you spent using the Cash on hand.
Please follow these steps:
Go to the Accounting tab and select Chart of Accounts.
Click New. Choose Bank as the Account Type and Cash on hand for the Detail Type.
You can also name it as Cash on hand, then click Save and close.
Select Transfer from the + New button.
Enter all the details required such as Transfer Funds From account and the Cash on hand for the Transfer Funds To.
Hit Save and close.
Go to the + New button and select Expense.
Select the Cash on hand as the Payment account.
Enter all details needed, then click Save and close.
We're almost done! The last thing we need to do is to deposit the unused amount back to the originating account. Simply follow the same steps on how to transfer the funds. This time, select the Cash on hand as the Transfer Funds From.
Thank you for your answer but I think I am confused. So I withdrew the money I paid my subcontractor (1099) $2300.00 which has already been logged into his account as a payment. But then with the remaining funds I deposited them right back into the bank. Do I need to go through all those steps considering I just want to put the funds back into the company?