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Posted by QBConsultant on May 8, 2008, 9:46 am
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> >>> >>> Good morning:
>
> >>> >>> How do I post an Owner's Contribution to a business expense on QB
> >>> >>> 2005, without using the JE?
>
> >>> >>> Thanks, Lynne
>
> >>> >> I don't think you can. Your OC account is an equity account. Make
> >>> >> Deposits and Write checks functions only allow you to access Asset
> >>> >> accounts. I have this issue with my own books when I need to pay fo=
r
> >>> >> something out of personal funds. I end up using a JE because I have=
> >>> >> not
> >>> >> figured out a work around short of calling the OC a bank account.
>
> >>> > Whats with the issue bit? Making a journal entry is no big deal.
>
> >>> > That said, since there is no real tax distinction between the busine=
ss
> >>> > (sole proprietor) and the owner it is a simple matter to create a ba=
nk
> >>> > account called Owners Petty Cash. The inital large deposit can be
> >>> > posted
> >>> > to Owners Capital. Use the new bank account to record any
> >>> > out-of-pocket
> >>> > expenditures.
>
> >>> I ended up skipping the deposit part of your suggestion and just made
> >>> accounts corresponding to my bank account and credit card so that I
> >>> could
> >>> identify the funds used to pay for the business expenditures.
>
> >>> I agree with your other comment that a JE is not a sin. I hate the way=
> >>> that
> >>> Intuit ignores the fact that expenditures and/or deposits sometimes ne=
ed
> >>> to
> >>> be applied to non-asset accounts. I'm sure they felt it necessary to
> >>> restrict users from accessing other accounts in an attempt to keep the=
> >>> number of errors small.- Hide quoted text -
>
> >>> - Show quoted text -
>
> >>>When you make a deposit or write a check you can select the owner's
> >>>equity account--you just have to scroll up to find it.
>
> >> Do I have a setting incorrect? In Write checks I only have "bank"
> >> accounts to chose from and in Make deposits I only can post to Asset
> >> accounts? No option to deposit to an Equity account such as Owner's
> >> Contribution or Owner Draw.
>
> > If the Owners Pety Cash account is set up as a bank account then it will=
> > show up when issuing checks just like any other bank account.
>
> I am aware of that. That is basically what I have had to do in my own
> company file. I actually set up Petty cash and a checking account so that =
I
> could distinquish exactly where the money came from so that I could cross
> reference those transactions with my quicken file that contains all of my
> checking account transactions.
>
> But Michelle implied that you could write checks & make deposits that impa=
ct
> an equity account and I was questioning that capability.- Hide quoted text=
-
>
> - Show quoted text -
What I was referring to is when the business pays for personal
expenses of the owner--you can post it to the owner's draw account.
For items the owner paid from with his/her personal funds, I usually
enter it as a JE. Sorry if I caused confusion.
Michelle L. Long, CPA, MBA
Author of: Successful QuickBooks Consulting: The Complete Guide to
Starting and Growing a QuickBooks Consulting Business
http://www.SuccessfulQuickBooksConsulting.com
http://www.amazon.com/Successful-QuickBooks-Consulting-Comprehensive-Startin=
g/dp/1434810690
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