Vicky5
2 years agoUser
clearing an invoice
My client paid her invoice but deposited funds into my personal account. I cannot transfer the funds to the business at this time but I need to show the invoice as paid. I figure there must be a way...
HI Tracey
thanks for this - my biggest issue is there are no funds to transfer to business so I need to show increase in equity introduced and get this to an account I can use as bank - I did set up a dummy invoice doing as you said and showing the payment to invoice from owner loan but there did not seem to be a way to increase owner equity to correspond. I am unsure if I am making sense in all of this and getting totally lost with double entry (I'm only in first stage of bookkeeping course so a bit of a novice).
How can I increase owner equity without any $ transaction.
Thanks
Vicky
Hi Vicky5
My apologies for the delay in getting back to you. It's not possible to select an equity account in the Bank account field when recording transactions. However, you can the record the transaction using the director loan account and then record a general journal from the director loan account to the applicable equity account.
Please let me know if you need further help.
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