How to record purchase that is done using owners personal funds
The owner did not use credit card to pay. He took it from his personal bank account via direct debit.So I would have to create the direct bank account from the chart of accounts. Then post purchases as the expense and charge off to cash/ direct debit to make the payment to the supplier
To record purchase as inventories Is this done through journal entry? and I then put it to current asset as inventories . and owners equity. so the accounts balance.. And to pay the owner we would credit by either check or bank deposit and debit the bank account.