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
Do a journal entry. Debit the expense account(s), credit an Other Current Liability type account, Due to Owner.
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.
and so once the company pays him, use the Other Current Liab Account to pay him out of???
Yep.
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!!!
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.
