Accidentally made a personal purchase using a business credit card

koshyckoshy

Hi folks

 

Facts:

• I have a business credit card
• I accidentally made a personal purchase using this credit card.
• How do I account for it in MYOB?

I've read through some posts, which I found questionable:

 

1. Suspense account: https://community.myob.com/t5/AccountRight-Banking/How-to-record-a-transaction-that-was-paid-wrongly-to-someone/m-p/702966/highlight/true#M9285

I don't want to do that because it is not a suspense account.

 

• Drawings:  is to effectively treat it as a divident repayment, and then a capital infusion: https://community.myob.com/t5/AccountRight-Banking/Re-Imbursing-Business-Account/m-p/745178/highlight/true#M11848

Doesn't seem quite right either.

 

• Another post said to: Expense it and when the money is repaid, to undo. I don't like to see negative expenses like this.

 

 

• Accounts Receivable: is there any objection to the following?

To record the accidental purchase:

 

DR Account Receivable (Director to Repay)                         $accidental_purchase

      CR   Cash                                                                                   $accidental_purchase

 

 

And then when it is repaid:

 

DR   Cash                                                                      $(funds repaid)

       CR  Accounts Receivable  (Director to Repay)                                 $(funds repaid)

 

 

Am curious how you would handle it?

DuncanS

@koshyckoshy 

 

Do you wish to repay the personal expense?

 

  If yes,   use the Suspense Account

 

  If no,   use the Drawings Account

 

Duncan