Sale, but not resale...

Posted by grep on May 30, 2007, 9:06 am

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I own two businesses: Mine, and my wife's (co-owner). Yesterday, my
wife's biz needed a new printer, so I purchased one with my biz credit
card. My wife's biz paid me for it.

How do I account for this? I don't want to invoice her and charge her
sales tax on the printer (I'm a computer equip. reseller, btw). I just
want to transfer the cost to the other biz.

Any suggestions?

grep

Posted by L on May 30, 2007, 9:22 am

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>I own two businesses: Mine, and my wife's (co-owner). Yesterday, my wife's

>biz needed a new printer, so I purchased one with my biz credit card. My

>wife's biz paid me for it.

> How do I account for this? I don't want to invoice her and charge her

> sales tax on the printer (I'm a computer equip. reseller, btw). I just

> want to transfer the cost to the other biz.

> Any suggestions?

In your file, enter the credit card charge. When you deposit the check from
your wife's business, use the same account you used in the CC transaction.

In your wife's file, just enter a check with the appropriate expense
account.

Posted by grep on May 30, 2007, 9:29 am

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I guess that sort of makes sense, but it won't match up with the bank
statements.

grep

L wrote:

>>I own two businesses: Mine, and my wife's (co-owner). Yesterday, my wife's

>>biz needed a new printer, so I purchased one with my biz credit card. My

>>wife's biz paid me for it.

>>How do I account for this? I don't want to invoice her and charge her

>>sales tax on the printer (I'm a computer equip. reseller, btw). I just

>>want to transfer the cost to the other biz.

>>Any suggestions?

> In your file, enter the credit card charge. When you deposit the check from

> your wife's business, use the same account you used in the CC transaction.

> In your wife's file, just enter a check with the appropriate expense

> account.

Posted by L on May 30, 2007, 11:32 am

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> L wrote:

>> In your file, enter the credit card charge. When you deposit the check

>> from your wife's business, use the same account you used in the CC

>> transaction.

>> In your wife's file, just enter a check with the appropriate expense

>> account.

>I guess that sort of makes sense, but it won't match up with the bank

>statements.

??
Why not?
The CC charge was to your own business. The wife's business wrote you a
check to cover the CC charge.

Entering the CC charge in your business file, and depositing the check to
your business back account, should be all that is necessary to keep the CC
and bank account statements in synch.

Allan's suggestion that you create a balance sheet account specifically for
this purpose is an elegant refinement (that I wish I had thought of).

Posted by grep on May 30, 2007, 12:49 pm

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Alright, I guess that makes sense. So I guess I could expense it to
Office Equipment or something ('cause that's what it is), and then
credit the payment back to Office Equipment. I know that, technically,
there's supposed to be some sort of Contra-Expense account, but this
seems simpler.

Thanks,

grep

L wrote:

>>L wrote:

>>>In your file, enter the credit card charge. When you deposit the check

>>>from your wife's business, use the same account you used in the CC

>>>transaction.

>>>

>>>In your wife's file, just enter a check with the appropriate expense

>>>account.

>>I guess that sort of makes sense, but it won't match up with the bank

>>statements.

> ??

> Why not?

> The CC charge was to your own business. The wife's business wrote you a

> check to cover the CC charge.

> Entering the CC charge in your business file, and depositing the check to

> your business back account, should be all that is necessary to keep the CC

> and bank account statements in synch.

> Allan's suggestion that you create a balance sheet account specifically for

> this purpose is an elegant refinement (that I wish I had thought of).