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Level 2

How to transfer funds from dummy account to owner's equity?

I have a client that is used his personal funds to pay vendor bills.  I created a dummy bank account and used it to process those payments.  Now my problem is that I have a negative amount -$1,300.00 and if I transfer that to Owner's Equity it would reduce it instead of increasing it to refund the client.  Please HELP!

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Best answer October 06, 2017

Best Answers
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Level 5

How to transfer funds from dummy account to owner's equity?

By dummy, I'm going to assume that you created a "Checking" account in QBO, but didn't link it to an actual account. Transaction shave been processed through there, but as there was no balance to reduce it didn't matter. 

 

For the purposes of your equity question, if the owner added their own funds to than it is:

 

Debit to Cash                         $XXX

     Credit to Equity                         $XXX

 

Where XXX is the amount of owner contribution.

 

You can do this in the General Journal option in the settings, gear icon top right. It is a bit accounting geeky, but by increasing equity, you are increasing cash. If you want a detailed explanation on how that works, I can give you that. But otherwise, that is the basic journal entry. 

View solution in original post

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Level 10

How to transfer funds from dummy account to owner's equity?

@an12gelica

 

You should use "Transfer" function in QBO. Since it is Transfer Type transaction, there is no need to use Journal Entry.

 

To Transfer:
Create "+" sign at the top right corner > Other > Transfer

 

In your case: From Equity Account to Dummy Bank Account (that will zero out the negative balance).

 From = Credit

 To = Debit

 

In QB desktop:
Banking menu at top > Transfer Funds

 

 

Transfer in QBO Transfer in QBO

View solution in original post

8 Comments 8
Highlighted
Level 5

How to transfer funds from dummy account to owner's equity?

By dummy, I'm going to assume that you created a "Checking" account in QBO, but didn't link it to an actual account. Transaction shave been processed through there, but as there was no balance to reduce it didn't matter. 

 

For the purposes of your equity question, if the owner added their own funds to than it is:

 

Debit to Cash                         $XXX

     Credit to Equity                         $XXX

 

Where XXX is the amount of owner contribution.

 

You can do this in the General Journal option in the settings, gear icon top right. It is a bit accounting geeky, but by increasing equity, you are increasing cash. If you want a detailed explanation on how that works, I can give you that. But otherwise, that is the basic journal entry. 

View solution in original post

Highlighted
Level 10

How to transfer funds from dummy account to owner's equity?

@an12gelica

 

You should use "Transfer" function in QBO. Since it is Transfer Type transaction, there is no need to use Journal Entry.

 

To Transfer:
Create "+" sign at the top right corner > Other > Transfer

 

In your case: From Equity Account to Dummy Bank Account (that will zero out the negative balance).

 From = Credit

 To = Debit

 

In QB desktop:
Banking menu at top > Transfer Funds

 

 

Transfer in QBO Transfer in QBO

View solution in original post

Highlighted
Level 15

How to transfer funds from dummy account to owner's equity?


@an12gelica wrote:

I have a client that is used his personal funds to pay vendor bills.  I created a dummy bank account and used it to process those payments.  Now my problem is that I have a negative amount -$1,300.00 and if I transfer that to Owner's Equity it would reduce it instead of increasing it to refund the client.  Please HELP!



No reason to make it hard, enter a deposit in the dummy account, and use owner equity or better owner equity investment as the source (from) account for the deposit. 

Level 15

How to transfer funds from dummy account to owner's equity?

"I have a negative amount -$1,300.00 and if I transfer that to Owner's Equity it would reduce it instead of increasing it to refund the client."

 

No, it will Increase Equity. A Deposit to Bank = investment or funds paid in, and that Increases the Equity. Taking a Draw Reduces Equity and Reduces Banking.

 

As Rustler Notes: "enter a deposit in the dummy account, and use owner equity or better owner equity investment as the source (from) account for the deposit."

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Level 2

How to transfer funds from dummy account to owner's equity?

Thank you

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Level 2

How to transfer funds from dummy account to owner's equity?

Thank you! It worked :-)  Feel very lucky to be part of this community.  Again THANK YOU

Highlighted
Level 1

How to transfer funds from dummy account to owner's equity?

When I enter a transfer like this and hit Save & Close, the entry never fully saves - the site sits there with the spinning circle (loading).  I've tried multiple browsers, also.

Highlighted
QuickBooks Team

How to transfer funds from dummy account to owner's equity?

Hi there, @dkoch17.

 

Thank you for letting us know what's happening to your Transfer window. I can share some information why you're being unable to save and close the transaction.

 

We have received reports similar to this from other users. Our product team has been alerted, and an investigation has been opened to further look into this error message. While waiting for a resolution, you can create a journal entry for the meantime.

  1. Click the Plus icon.
  2. Choose Journal Entry.
  3. Enter the necessary information.
  4. Click Save.

We also would like to get your account information set up for email update. Please call our phone support to have you added on our list of affected users.

  1. Visit this link: https://help.quickbooks.intuit.com/en_US/contactus.
  2. Select QuickBooks Online.
  3. Select the issue/topic.
  4. Click the Get Phone Number button to see the support number.

I’m here to help you if you have other concerns. I will also make sure to add an update in this thread once I get some notifications. Have a good one.

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