How do you record an expense into QuickBooks that you paid using the Debit/Credit card of a friend?
For the subscription fee of QBO, G Suite and likes, I'm using the Debit card of a friend. I will pay him at some point in the future.
If I'm not wrong, My Friend's account will basically be Accrued Liability where the Expense A/C will be debited and Accrued Liability A/C i.e. my friend will be credited (correct me if I'm wrong).
I'm not sure how to record this subscription fee in QBO (Plus). And please also suggest if I should create separate accounts for all the online subscriptions (QBO, G Suite, etc) from Charts of Accounts?
And what will be needed to be done once I pay him back in the future?
Thanks for your time.
Solved! Go to Solution.
Thank you for posting, @imadnashraf.
You can create a liability account from your Chart of Accounts for the incurred expense. Then once you've paid it, you can record those payments as an expense.
For detailed guidance on how to set up your chart of accounts and add new accounts, see this article: Add an account to your chart of accounts in QuickBooks Online. It would also be best to consult an accountant to get advised what account to use when creating this.
From here, you can now add these account to a journal entry, here's how to add a journal entry:
- Go to the + New and choose Journal Entry.
- Enter all the necessary information.
- Select Save and new or Save and close.
Here’s more information on record journal entries: Create a journal entry in QuickBooks Online.
If you have any other questions or would like me to clarify anything else about your account, let me know. I'm always glad to help in any way I can. Have a good day.