Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
Connect with and learn from others in the QuickBooks Community.
Join nowI have been working with a book keeper and she informed me she would need to do journal entries for the transactions that happened in my personal account that was used for business. Ex: using personal savings to pay an expense for the business.
I was asked to create a spread sheet of the bank statements with it categorized in a credit debit format.
Ex. If there is an advertising expense of 5,000 and I paid that expense with my personal account on the 3/2/20
journal entry date: 3/2/20
Debit:
owner investment 5,000
Credit:
advertising 5,000
is this correct?
Not if the account titled owner investment is an equity account type.
Journal entries should be the exception when using QB, they often do not work as you think they should, and when you use inventory type items they never work for inventory. It is much better to use the forms on the home page the way QB is designed to be used. Journal entries also bypass accrual/cash reporting, and will not show on many reports.
Have her bring up an expense transaction
line one: advertising expense, 5,000
line two: owner equity investment, -5,000
save the zero dollar transaction
note that line two is a negative number
And to top it off, in a journal entry. Expenses are debits and source of funds for expense (chevking, owner equity,etc) are credits. Your bookkeeper would have yoj reducing business expenses instead of increasing.
One way to handle off the books transactions tgat affect the books is with a dummy clearing bank type account. Recotd expenses, such as advertising psid frl. Personsl funds, as coming from this clearing account. Then turn around and make deposit to clearing account from owner contribution (equity)
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.