Forum Discussion

koshyckoshy's avatar
2 months ago
Solved

Accidentally made a personal purchase using a business credit card

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.

 

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?

  • koshyckoshy 

     

    Do you wish to repay the personal expense?

     

      If yes,   use the Suspense Account

     

      If no,   use the Drawings Account

     

    Duncan

2 Replies

  • DuncanS's avatar
    DuncanS
    Ultimate Partner

    koshyckoshy 

     

    Do you wish to repay the personal expense?

     

      If yes,   use the Suspense Account

     

      If no,   use the Drawings Account

     

    Duncan

  • Genreve_S's avatar
    Genreve_S
    MYOB Moderator

    Hi koshyckoshy,

     

    Thanks for your post. 

     

    Your question is indeed valid. However, as forum moderators, we're not permitted to provide allocation advice. You could consider the suggestion provided by DuncanS or seek advice from an accountant or financial advisor for this matter.

     

    Should you need further assistance or have other inquiries, feel free to start a new thread in the forum.

     

    Thanks,
    Genreve