USA Application of Credit Card Payments

Joined
Nov 29, 2014
Messages
19
Reaction score
0
Country
United States
Client owes x on his card. Expenses on the card are commingled. Client makes a partial payment on the balance. How to apply the payment?
 
Joined
Mar 22, 2016
Messages
22
Reaction score
2
Country
Canada
What do you mean by commingled?

K.I.S.S. You post debit to credit card payable credit to cash.
 
Joined
Nov 29, 2014
Messages
19
Reaction score
0
Country
United States
Understand simple J.E., but where expenses on the card are commingled, part of the payment is a draw and part is business expenses.
 
Joined
Apr 17, 2011
Messages
44
Reaction score
4
Country
United States
@QBslave: The payment itself would always go to the CC liability not draws or expense. The transaction on the CC itself would be what you would have to figure out which is business and which is personal. Doesn't matter that they are paying the CC balance with business funds, what matters is where the charges are being posted to from the statement.

Beginning balance = 1,250.00
Gas for business 25.00 = fuel expense
Haircut for owner 20.00 = owner draw
Ending Balance = 1,295.00
Will reconcile to the CC statement. Then when a payment is made to the CC it's Debit CC liability / Credie Checking account

Also if you wanted to use a due to and from account the personal charges wouldn't be due TO shareholder, they would be due FROM shareholder.
 
Last edited:

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top