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Owner's equity investment (Quickbooks)

 
 
Ed B.
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      11-04-2004, 03:02 AM
I have started a business (sole proprietorship) and want to record
that I have made an initial investment from my own money. I went to
the accounts section and selected Owner's Capital - Investments. I
recorded the amount I invested, but I'm not sure what expense or
income account to record that under, or should I have used the Opening
Balance account instead of Owner's Capital?

Ed B.

 
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N Owen
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      11-04-2004, 08:57 PM
On Wed, 03 Nov 2004 21:02:58 -0600, (E-Mail Removed) (Ed B.) wrote:

>I have started a business (sole proprietorship) and want to record
>that I have made an initial investment from my own money. I went to
>the accounts section and selected Owner's Capital - Investments. I
>recorded the amount I invested, but I'm not sure what expense or
>income account to record that under, or should I have used the Opening
>Balance account instead of Owner's Capital?
>
>Ed B.
>

Ed-The offset of the investment would be what it was used for - did you
deposit it into a bank account? dr bank, cr investment

Expenses pd w/cash or pers cc? cr investment, dr individual expenses, fixed
asset, etc.

HTH



 
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S.M. Serba
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      11-04-2004, 08:57 PM
What exactly did you invest, cash on deposit in a bank account? If so, you
should record the deposit so it goes into the bank, and the credit side of
the deposit should show your name, and the G/L account for the amount should
be the Owner's Capital - Investments account.

If you invested equipment, furniture and fixtures, a reference library,
computers and peripherals, then you should be making a General Journal entry
(Banking menu) and crediting the assets and debiting the Owner's Capital
account.

Feel free to email me offline for more help,


--
Stephanie Serba, AICIA
Partner, Durham Business Outsource
Accounting & Technology
smserba <at> dbo <dot> ca
www.dbo.ca


"Ed B." <(E-Mail Removed)> wrote in message
news:(E-Mail Removed)...
> I have started a business (sole proprietorship) and want to record
> that I have made an initial investment from my own money. I went to
> the accounts section and selected Owner's Capital - Investments. I
> recorded the amount I invested, but I'm not sure what expense or
> income account to record that under, or should I have used the Opening
> Balance account instead of Owner's Capital?
>
> Ed B.
>




 
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Tom Healy
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      11-04-2004, 08:57 PM
<< I have started a business (sole proprietorship) and want to record
that I have made an initial investment from my own money. I went to
the accounts section and selected Owner's Capital - Investments. I
recorded the amount I invested, but I'm not sure what expense or
income account to record that under, or should I have used the Opening
Balance account instead of Owner's Capital? >><BR><BR>

The offset would be to the bank account into which you put the funds. The
other
way to look at it is that you made a deposit to a new checking account for
the
business. Then the question is: what is the offset to the deposit
transaction:
it's Owner's Capital.


--
Thomas E Healy, CPA, PC
1650 38th St., Ste 202W
Boulder, CO 80301
Please send email to: (E-Mail Removed), since I block all email at my
newsgroup address.
phone (303) 443-1804
fax (720) 489-3772

 
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Mike Block - QuickBooks Tax Cut C.P.A.
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      11-05-2004, 05:57 PM
(E-Mail Removed) (Ed B.) wrote in message
news:<(E-Mail Removed)>. ..
I have started a business (sole proprietorship) and want to record
that I have made an initial investment from my own money. I went to
the accounts section and selected Owner's Capital - Investments. I
recorded the amount I invested, but I'm not sure what expense or
income account to record that under, or should I have used the Opening
Balance account instead of Owner's Capital?

Ed B.


You have correctly recorded entry for your initial investment. Since,
your business is a sole-proprietorship entity and you are proprietor
of the same, amount you invest in the business is owner's capital in
business and comes under equity & liability in financial statement.
This investment doesn't effect profit or loss of your business so you
should not record it under any expense or income account. Now, opening
balance account is used to record all figures brought forward from
closing balance of last financial period. Since, your present
investment is your fresh investment in your business and not brought
forward from last financial period it will not go under opening
balance account but directly under Owner's capital - investments.


Mike Block - QuickBooks Tax Cut C.P.A.
Intuit paid me to make QuickBooks better!
http://www.blocktax.com/
http://www.quickbooks-add-ons.com/

 
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