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Best answer June 19, 2022
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Hi Booking Bash!
From what I'm getting, the business owner used his personal funds to pay the supplier, and you want to record the reimbursement. I can help you with this. However, I highly advise letting an accountant review the entries to ensure the accuracy of your books.
Step 1: Credit owner's equity and debit Accounts Receivable.
Normally, the first thing you'll do is to create a journal entry to record the business expense against the owner's equity account, However, you already have a bill, so your JE will now be a debit to Accounts Payable and a credit to the equity account. This creates a supplier's credit, which can be applied as payment to the bill, and reduces the equity account.
Step 2: Pay the bill using created credit.
- Open the bill and click Make payment.
- Select the journal entry in the Credits section.
- Click Save and close.
Step 3: Reimburse the owner by creating a check transaction.
Here's a related article for your additional reference: Pay for business expenses with personal funds. The only difference is that there's no bill yet.
You can always visit us back in the Community if you need more assistance. Take care and have a good one!
Hi Booking Bash!
From what I'm getting, the business owner used his personal funds to pay the supplier, and you want to record the reimbursement. I can help you with this. However, I highly advise letting an accountant review the entries to ensure the accuracy of your books.
Step 1: Credit owner's equity and debit Accounts Receivable.
Normally, the first thing you'll do is to create a journal entry to record the business expense against the owner's equity account, However, you already have a bill, so your JE will now be a debit to Accounts Payable and a credit to the equity account. This creates a supplier's credit, which can be applied as payment to the bill, and reduces the equity account.
Step 2: Pay the bill using created credit.
- Open the bill and click Make payment.
- Select the journal entry in the Credits section.
- Click Save and close.
Step 3: Reimburse the owner by creating a check transaction.
Here's a related article for your additional reference: Pay for business expenses with personal funds. The only difference is that there's no bill yet.
You can always visit us back in the Community if you need more assistance. Take care and have a good one!
