I am stuck - thanks for the help in advance
My boss is a sole prop. and every month she has her soc sec deposited into the business account in which I put the deposit into the business checking under owner contributions Owners Equity. Then she also has sales deposited into the business checking and personal checking accts. She pays personal and business expenses using both accounts. She does not want to give up doing it this way. My questions is - if I deposit the funds in checking and owner contr. acct. when I put an expense in checking and apply it to the correct expense account what happens to the amount in contributions. So if she pays for groceries out of the business account I go to checking and put the store paid to then put it under personal expense account and the amount. But if it comes out of the business checking account how do I show it needs to be paid from the contributions money. The amount cant come out of both the checking and contributions? She also pays business expenses with her own personal checking account. Thanks
My boss is a sole prop. and every month she has her soc sec deposited into the business account in which I put the deposit into the business checking under owner contributions Owners Equity. Then she also has sales deposited into the business checking and personal checking accts. She pays personal and business expenses using both accounts. She does not want to give up doing it this way. My questions is - if I deposit the funds in checking and owner contr. acct. when I put an expense in checking and apply it to the correct expense account what happens to the amount in contributions. So if she pays for groceries out of the business account I go to checking and put the store paid to then put it under personal expense account and the amount. But if it comes out of the business checking account how do I show it needs to be paid from the contributions money. The amount cant come out of both the checking and contributions? She also pays business expenses with her own personal checking account. Thanks