Forum Discussion

HeathGravett1's avatar
HeathGravett1
4 months ago
Solved

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 fun...
Accounts Payable
journal entry
owner funds
  • Julia_Berkhout's avatar
    Julia_Berkhout
    3 months ago

    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 

Julia_Berkhout's avatar
Julia_Berkhout
Super Cover User
4 months ago

If your Myob software has a bills or purchases section their should be an option to record a supplier payment in their to close the bill.

  • HeathGravett1's avatar
    HeathGravett1
    3 months ago

    Hi Julia

    Apologies for late response and thanks for responding. The issue with that method is that it wants to create an entry into one of the defined bank accounts but the money came from personal equity so I just want to mark the bill as paid without generating any entries.

    • Julia_Berkhout's avatar
      Julia_Berkhout
      Super Cover User
      3 months ago

      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 

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