Owner's equity investment (Quickbooks)

Discussion in 'Accounting Software' started by Ed B., Nov 4, 2004.

  1. Ed B.

    Ed B. Guest

    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 B., Nov 4, 2004
    #1
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  2. Ed B.

    N Owen Guest

    On Wed, 03 Nov 2004 21:02:58 -0600, (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
     
    N Owen, Nov 4, 2004
    #2
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  3. Ed B.

    S.M. Serba Guest

    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." <> wrote in message
    news:...
    > 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.
    >
     
    S.M. Serba, Nov 4, 2004
    #3
  4. Ed B.

    Tom Healy Guest

    << 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: , since I block all email at my
    newsgroup address.
    phone (303) 443-1804
    fax (720) 489-3772
     
    Tom Healy, Nov 4, 2004
    #4
  5. (Ed B.) wrote in message
    news:<>...
    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/
     
    Mike Block - QuickBooks Tax Cut C.P.A., Nov 5, 2004
    #5
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