Forum Discussion

HeathGravett1's avatar
HeathGravett1
2 months ago

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
    15 days 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 

HeathGravett1's avatar
HeathGravett1

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
15 days 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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