owner capital

bega1
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owner capital

Hi can anyone help me with a small issue I have please.

I put my personal cash into my business for insurances and office supplies to get it going.

I can now pay the money back out of the business Q. How do I record on the record in myob expenses the money I'm going to send to my personal account e.g, is it an expense or a bill or a liability ? I have the receipts for the purchases.

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Tracey_H
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Re: owner capital

HI @bega1 

 

Thanks for your post. Generally speaking if you have deposited a lump sum amount into your business bank account you would record a Receive money or Transfer money transaction. You would need to allocate the amount to either an Owner's equity account or a Director loan account. When reimbursing yourself you would record a Spend money or Transfer money transaction, again allocating the amount to that equity or loan account. 

 

If you pay for purchases from your personal account you would usually have a Directory loan account set up and select that loan account as the Pay from account. When reimbursing yourself for those purchases you would record a Transfer money transaction with the Transfer from account being the bank account and the Transfer to account being the loan account.

 

I do recommend speaking to your accountant about whether you should use an Owner equity type account or a Director loan account. Once you know which you need to use I'll be happy to give more information on recording those transactions in your software.

 

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.

Cheers,
Tracey
Previously @bungy15

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