I need help with owners equity entry

Hello there, judithfoyabo.

I'm here to guide you on how the owner's equity entry works in QuickBooks Online (QBO). This way, you can keep your books accurate and monitor the growth of your business.

The owner's equity is the total value of a company's assets that belong to the owner. It's calculated by deducting all liabilities from the total value of an asset (Equity = Assets – Liabilities).

If you want to record any investments added to the business, you just need to categorize the transaction associated with your deposits. This is possible if you’ve connected your bank account to QBO.

If you don't automatically import your bank transactions, you can record a deposit into your equity account instead. Here's how:

1. Go to the + New button.
2. Select Bank deposit.
3. From the Account drop-down menu, select the bank account you're depositing the money into.
4. Enter the Date.
5. In the Add funds to this deposit section, enter the name of the investor in the Received from field.
6. Select the appropriate equity account from the drop-down list in the Account field.
7. Specify a Payment method.
8. Enter the investment amount in the Amount field.
9. Select Save and close.

After recording an investment, you can also pay back a capital investment for yourself, partners, or co-owners. This process is called a capital disbursement. To learn more about it, kindly check out this article: Record paying back an investment.

Also, I'd appreciate it if you'll share more specific details about your owner's equity entry concern. This way, I can provide the exact resolution.

Please let me know by selecting the Reply button. You can always get back to me. I'm always around to help. Take care and stay safe!

Thanks for your response, the second problem now that I couldn't save my entries painstakingly entered it error-ed stating "Something's not quite right. Please balance debits and credits." I thought the debit column automatically enters the whats on the credit column? Sheet seems balance at the bottom but 0 for credit. This looks like a bug because I did not see that problem in client book when I used it. It is not a cache issue as I cleared cache and cookies and it still failed, I entered whole tax numbers rounded and well as exact dollar and cents to no avail, please help!

Thanks, Judith

How are you, Judith?

I'd like to share about recording entries in QuickBooks and help you out to save them successfully.

QuickBooks will not automatically fill out the same amount of what we have entered on the credit column or vice versa. It could be that we only entered the amount on the debit side. That's why the credit is showing zero. Please consider checking the sample screenshot below where we are getting the same error message:

A journal entry helps us to summarize the debit and credits of transaction entry to a journal, which allows us to sort our transactions into manageable data. With that, we'll need to make sure that the debit and credit entries are equal. Also, they should have the same total amount.

Let's try to check your entries one more time to make sure that they are all correct. Here are things to follow:

1. Go to the +New button.
2. Click Journal Entry under Other.
3. Select the appropriate account on the first and the second line.
4. Each account should only have a debit or credit amount.
5. For example, you enter the debit amount in the first account. The second one would normally be using the credit with the same amount of the debit.
6. Once done, click Save and Close.

You may want to check out this article: Reverse or delete a journal entry. It contains information on how to we can update and correct your entries as well as removing it if necessary.

Let me know how the steps work for you by commenting below. I want to make sure that you're good to go. I hope you're good these days. Take care!

I have a similar problem.  When we receive a payment on invoice from a client we follow, or want to follow, these steps:

We have a breakdown of the amounts on a separate sheet

Deposit the funds received to the Undeposited funds account

Than we want to receive 20% to owner 1 investment

Then we want to receive 20% to owner 2 investment

Then we want to receive 20% to owner 3 investment

ie...

$10,000 received from the client on invoice

60% goes to the owners split 3 ways

the balance goes to the bank

We want to make sure the entire invoice gets applied and we want the split to go out to the proper equity accounts as an investment/deposit so that we can withdraw at the end of the year.

Help please

Then the balance goes to the bank

It's nice to have you back here in the Community, @cembick.

I've got some insights to share on how you can split and record your funds in QuickBooks Online.

At this time, being able to split a single invoice payment for one transaction isn't available. You can only split the payment if you're going to apply this to multiple sales entries.

To get your work done, I'd recommend recording a partial payment and have it deposited on your designated accounts. Know that you'll need to manually calculate the amount that needs to be deposited on your accounts.

Here's how:

1. Go to Sales.
2. Choose Invoices tab.
3. Look for the open invoice.
4. Click Receive Payment on the Actions column. 
5. Choose the Payment Method.
6. Select the account where the amount will be deposited.
7. Enter the specific partial amount to be paid on the invoice. 
8. Put a check mark on the Invoice to be paid.
9. Click Save and Close. 

Just repeat the same process in applying the rest of the partial payments until it gets deposited to all of your desired account. Make sure to select the correct bank account when recording the partial payment.

You may also consider creating a Journal Entry as presented by my peer above. This way, you can move the payments to different accounts. In doing this, I'd recommend reaching out to your accountant so you'll be guided about the accounts to be debited and credited. This is to ensure the accuracy of your books.

You can also seek help from our accountants through this site: Find an accountant.

For more details about receiving payments and managing funds from the Undeposited Funds account in QBO, please see these links:

• Learn how to receive and record invoice payments in QuickBooks Online
• Learn how to put payments into the Undeposited Funds account before you combine them into a deposit

Should you need anything else with receiving payments, let me know. I'd be pleased to help. Have a good one!

I purchased a 2000.00 tool box from my savings and I want to put it into my sole proprietor business. How do I do that?

Karen

Good morning, @Karen252. 

Thanks for chiming in on this thread and welcome to the QuickBooks Community. 

I appreciate you coming here with your question about entering some data into your QuickBooks Online account. However, with the details you gave and the question you asked, your accountant would be able to give you the best answered based on your business. 

If you don't have any accountant, check out this link to find one near you: Find ProAdvisor. 

Feel free to reach back out if you have any other questions. I'm only a comment away. Take care!