Forum Discussion

Megan700's avatar
Megan700
User
5 years ago
Solved

Owner's Borrowing

If the owners take money out of the business but pay it back in, what account should it go in as? Owner's Drawings? Loan to Owner? Also, when they accidently make a personal payment on a business cre...
  • Tracey_H's avatar
    Tracey_H
    5 years ago

    Hi Megan700 

     

    Thanks for your post. I do recommend checking with the accountant about which account to allocate these amounts to as there are a few different ways these can be recorded.

     

    From an AccountRight perspective, when the owner withdraws money from the business you can record a Transfer Money transaction. The Pay from Account will be the bank account and the Pay to Account will be the owner loan/drawing account. If the owner repays money you would record another Transfer Money, this time with the Pay from account as the owner loan/drawings account and the Pay to Account as the bank account.

     

    Just make sure the owner loan/drawing account has the Account Type set as either Bank or Credit Card so that you can record those transactions. You can check the Account Type in Accounts List>>open the account>>Account Type.

     

    Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Tracey_H's avatar
Tracey_H
Former Staff
5 years ago

Hi Megan700 

 

Thanks for your post. I do recommend checking with the accountant about which account to allocate these amounts to as there are a few different ways these can be recorded.

 

From an AccountRight perspective, when the owner withdraws money from the business you can record a Transfer Money transaction. The Pay from Account will be the bank account and the Pay to Account will be the owner loan/drawing account. If the owner repays money you would record another Transfer Money, this time with the Pay from account as the owner loan/drawings account and the Pay to Account as the bank account.

 

Just make sure the owner loan/drawing account has the Account Type set as either Bank or Credit Card so that you can record those transactions. You can check the Account Type in Accounts List>>open the account>>Account Type.

 

Please let me know if you need further help.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.