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Sheen Solutions
Level 2
posted
‎July 15, 2020 08:48 AM
last updated ‎October 05, 2020 8:06 PM

Ho do I reclassify amount posted to cash that should be owner equity

I have posted bills and used cash in quick books  to clear them but the should go to owners  equity. How can I reclass them inquick books.

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3 Comments 3
MaryLandT
Moderator
Moderator
‎July 15, 2020 10:23 AM

Ho do I reclassify amount posted to cash that should be owner equity

Hello there, Sheen Solutions,

 

Let's reclassify the amount by opening those bill transactions. Then, manually change the posting account to Owner's equity. Doing this will help ensure you have accurate records on your register.

 

However, if it's the bill payment that is coming from the equity, you'll want to create a journal entry. Then, debit accounts payable and credit equity so you can apply it to the bill as a payment. See the attached screenshot below for your visual guide.

createJEtoreclassify.PNG

 

To apply the journal entry to your bill:

  1. Go to Expenses from the left menu, then choose Vendors.
  2. Locate the vendor and open their transaction history.
  3. Find the bill and click Make payment under Action.
    createJEtoreclassify1.PNG
  4. Mark the bill and the journal entry, then click Save and close.
    createJEtoreclassify2.PNG

I've added this page: Mixing business and personal funds to learn how to record transactions using business accounts in QuickBooks.

 

Stay in touch if there's anything else you need. I'm always right here to help.

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Sheen Solutions
Level 2
‎July 15, 2020 12:29 PM

Ho do I reclassify amount posted to cash that should be owner equity

Hi Mary,

 

I have tried what you told me to do as per the example  however seeing that this bill is already paid by cash and it should  not be .

 

 Is the  journal entry  debiting cash and crediting owner equity instead  of   accounts payable   debiting and crediting owners equity.  Just want to be  sure as I am new to quick books

 

It is an accounts payable  but it was not paid by the business but by the owner

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MariaSoledadG
QuickBooks Team
QuickBooks Team
‎July 15, 2020 01:08 PM

Ho do I reclassify amount posted to cash that should be owner equity

Let's make sure to correctly record journal entries entered in QuickBooks Online, Sheen Solutions.

 

As mentioned by @MaryLandT, you can reclassify by manually changing the posting account to the Owner's equity. Yet, if you're still unsure about the process and since this requires technical knowledge in accounting, I suggest reaching out to your accountant's advice for other ways on how to record or reclassify the amount in QuickBooks.

 

For future reference, you'll want to run reports for specific accounts, please check this article for more information and detailed steps: Run Reports In QuickBooks Online.

 

If there's anything else that you want us to help with, let us know so we can get back to you.

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