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I am doing the books and records for a company - lets call them Company A. Company A has two partners. One of the partners also has another LLC - i"ll call that Company B. When the owner's were going to start Company A they originally thought they would just use the existing LLC, Company B - however since they are partners ultimately decided they should open Company A. Company B - the one owner's existing company bore a lot of the start up costs of Company A. The owner expensed those start up costs on the books of Company B. Now he wants a payable on the books of Company A to represent the amount of money his other business fronted for the start up costs. Eventually when Company A starts making money and the two owners start taking distributions the one owner will get paid out first these start up costs he fronted.
I am stuck on how to book this to the books of Company A given that the expenses aren't going to hit company A.
in the chart of accounts create a liability account named for the owner.
Create a cash type bank account called owners
enter the expense transactions in the owners cash account
finish with a deposit to the owners cash account using the owner liability account as the source account for the deposit
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