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Hi guys,
There are some extra expenses that were paid out but via a personal bank account that isn't linked to Quickbooks, so I expect I need to make a JE. If I debit 'Repairs and Maintenance' (which is what these cost were) what should I credit?
Thank you so much in advance.
j
Creating JE is one of the options:
Line 1: Debit: Repairs and Maintenance
Line 2: Credit: Shareholder's Loan
However, the proper way to do this is as follows:
1) Create Expense
2) Skip the payment account (it doesn't matter what you have there)
3)
Line 1: Category - Repairs and Maintenance (make sure you enter amount and select Sales Tax)
After Line 1 the total expense amount should add up to receipt total
Line 2: Category - Shareholder's Loan (enter total value as negative and Sales Tax as Exempt)
After Line 2 the total expense amount should become zero
@janeboliver RE: If I debit 'Repairs and Maintenance' (which is what these cost were) what should I credit?
If it's a loan, then create or use a liability account to track the loan.
Or, if it's basically an owner's investment and you're not planning to pay it right back, then use an owner's equity account.
In both cases, it may be conceptually easier to use the account's register and enter transactions that increase the account's balance, which - when you use an expense account - will increase the expense.
Always so practical!
(I don't have the time to comment or cheer on each of your posts.)
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