personal money for business account
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i work for a small decorating comp., that has had some cash flow problems. the owner has paid some of the company bills will his own money. i know that at some point he will be reimbursed by the company. how do i show his personal funds coming in to the company...
what is / type of entry that needs to be done to get personal monies into the business account and then to pay the bills??? please advise - thank you
Answer
Do a journal entry. Debit the expense account(s), credit an Other Current Liability type account, Due to Owner.
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and so once the company pays him, use the Other Current Liab Account to pay him out of???
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Yep.
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i am doing the payments one at the time...and the answer about doing the a/p does not work...plz give me an example...i have tried calling our cpa - but it is friday and he is unavailable and the owner would like to get these entries completed - plz HELP!!!
MY DILEMA - utility bill already entered in a/p - paid with owner funds from personal acct...doing what was suggested above, no credit is created...is there a step i have missed??? it worked for the home depot credit card pmt - we do not track credit cards thru a/p - still have a few more to do and really would like some assistance!!! please help!!!
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If you debit A/P with the proper vendor name, you get a credit (in the general-use sense; it's technically a debit entry) in A/P. Without seeing your entries, I've got no way of trouble-shooting them.
You could also set up a bogus "clearing" account as a Cash-type account, pay the bill through that, and use it as the debit side of the original JE.
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If you've already got the bills in through A/P, debit A/P with the proper vendor name, then go in to Pay Bills and select the bills paid, and apply the credit that the journal entry created.