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I am LLC with a partner and we just started business. I bought a chair for MY office with MY own personal money. How do I record this in quickbooks? My business partner bought her own laptop and furniture for her office with HER personal funds? How do I enter this in Quickbooks? Are they entered the same way.

 
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Best answer July 16, 2019

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Anonymous
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I am LLC with a partner and we just started business. I bought a chair for MY office with MY own personal money. How do I record this in quickbooks? My business partner bought her own laptop and furniture for her office with HER personal funds? How do I enter this in Quickbooks? Are they entered the same way.

Welcome to the Community, @teld9d.

 

I'm here to help record your business expense paid with your own and your partner's funds in QuickBooks.

 

You can create a journal entry to debit the amount to an expense account and credit to an Owner's equity or Partner Equity. Then record the reimbursement using a check or expense transaction.

 

Please refer to this article for the detailed steps: How to pay for business expenses with personal funds.

 

You can also check this link for more information: About mixing business and personal funds.

 

I'd like to include this helpful article as well just in case you may need to transfer funds between accounts in the future: How to record a funds transfer between two accounts.

 

That should do it. If you have additional questions about the process, do let me know. I'm here to help however I can.

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Anonymous
Not applicable

I am LLC with a partner and we just started business. I bought a chair for MY office with MY own personal money. How do I record this in quickbooks? My business partner bought her own laptop and furniture for her office with HER personal funds? How do I enter this in Quickbooks? Are they entered the same way.

Welcome to the Community, @teld9d.

 

I'm here to help record your business expense paid with your own and your partner's funds in QuickBooks.

 

You can create a journal entry to debit the amount to an expense account and credit to an Owner's equity or Partner Equity. Then record the reimbursement using a check or expense transaction.

 

Please refer to this article for the detailed steps: How to pay for business expenses with personal funds.

 

You can also check this link for more information: About mixing business and personal funds.

 

I'd like to include this helpful article as well just in case you may need to transfer funds between accounts in the future: How to record a funds transfer between two accounts.

 

That should do it. If you have additional questions about the process, do let me know. I'm here to help however I can.

View solution in original post

Highlighted
Level 1

I am LLC with a partner and we just started business. I bought a chair for MY office with MY own personal money. How do I record this in quickbooks? My business partner bought her own laptop and furniture for her office with HER personal funds? How do I enter this in Quickbooks? Are they entered the same way.

Under the expense say I bought a tool for 100.00 can I just add an entry under the expense that says partners equity and -100.00?

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QuickBooks Team

I am LLC with a partner and we just started business. I bought a chair for MY office with MY own personal money. How do I record this in quickbooks? My business partner bought her own laptop and furniture for her office with HER personal funds? How do I enter this in Quickbooks? Are they entered the same way.

The amount should be positive, @land7784.


I appreciate you for sharing your concern on the Community page.


When creating a Journal Entry (JE) in QuickBooks, you’ll have to enter a positive amount to balance the debits and credits. So instead of -100, make it a positive 100.


The first line of JE increases their expense account's balance while the second line increases your Partner's Equity account's balance.


Here are the screenshots for your visual reference:


I also have a video tutorial here to learn how to pay expenses with owner funds. I’m sure you’ll find it helpful.


In case of assistance or additional guidance, just leave us a message. I’ll get back to you as soon as I can. Have a good one.

Highlighted
Level 1

I am LLC with a partner and we just started business. I bought a chair for MY office with MY own personal money. How do I record this in quickbooks? My business partner bought her own laptop and furniture for her office with HER personal funds? How do I enter this in Quickbooks? Are they entered the same way.

The video shows to enter the expense and under it enter the partner equity as a -100. which brings the expense to zero. You showed me to enter a journal entry is this two ways of doing the same thing?

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QuickBooks Team

I am LLC with a partner and we just started business. I bought a chair for MY office with MY own personal money. How do I record this in quickbooks? My business partner bought her own laptop and furniture for her office with HER personal funds? How do I enter this in Quickbooks? Are they entered the same way.

Hello there, @land7784.

 

There are corresponding accounts when creating a Journal Entry. If there are two accounts added, another same account to follow. This will offset the parent account to make the journal entry balance out. Both the debits and credits have to equal.

 

As the video shows, you can create an expense transaction to make the expense to zero. Since using the Journal Entry won't add a negative amount.

 

Here's how to do it:

  1. Click Expenses on the left menu.
  2. Choose the Vendors tab.
  3. Select the Vendor.
  4. On the Category details section, add the expenses to amount 100 and the equity to -100.
  5. Click Save and close.

 

 

You can use this article on how to manage your expense like modifying and deleting expenses: Enter, edit, or delete expenses in QuickBooks Online.

 

This article will serve as your guide on when to enter bills and when to record your expenses: What are the differences between bills, checks, and expenses?.

 

Please feel free to leave a query to this thread if there's anything else. I'll be glad to help you. Take care!

Highlighted
Level 1

I am LLC with a partner and we just started business. I bought a chair for MY office with MY own personal money. How do I record this in quickbooks? My business partner bought her own laptop and furniture for her office with HER personal funds? How do I enter this in Quickbooks? Are they entered the same way.

@MaryAnn_E 

 

Sorry MaryAnn I am a little slow, so basically your saying the journal entry is the best way, if I follow the steps and add the expense and partners equity amount, then if I am understanding correctly I do not have to add a separate expense in the expense section. 

 

Highlighted
Moderator

I am LLC with a partner and we just started business. I bought a chair for MY office with MY own personal money. How do I record this in quickbooks? My business partner bought her own laptop and furniture for her office with HER personal funds? How do I enter this in Quickbooks? Are they entered the same way.

Joining the thread to share some more information about this, @land7784,

 

There are two ways to record a personal expense.

 

If you want to follow the one on the video, then yes, it's okay to use an expense entry and assign a negative amount for Owner's Equity. This process works similarly as the second option using a journal entry, except that you no longer need to assign a negative sign for OE. This is because, crediting capital on a JE will increase it's balance.

 

Regardless, both options has the same posting on financial reports. See the following screenshots for your guide, or see which method you prefer:

 

After the expense money is returned to the Owner's Equity account for the partner, you can now proceed to refunding him/her. Use Steps 2 of this article to complete the process: Pay for business expenses with personal funds.

 

If you have any more questions, feel free to tap me anytime. I'll be right here to guide and help you. Have a good one!

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