Allocating Owner personal fund payments
In setting up the business, bills were created (DR expenses or plant & Machinery) and credit accounts payable. Owners funds/equity was created by journal by DR Accounts payable CR Owners personal funds (equity). Now I ned to match the journal entry in accounts payable to the supplier but this doesn't appear possible. I'm thinking I need to create another journal to CR Accounts payable, debit one of the allocatable bank accounts (external funds). Then try and match those journal entries to the supplier to close the bill. Can someone advise whether this is the right approach?
Hi,
Sorry posibly misread.
Contact your Accountant no journal should really be entered to accounts payable at all.
owners funds entries should be entered as owners loan/drawing or contributions and other side maybe to relevant bank account.
journals to accounts payable will throw this account out of balance
