how to post purchases/reimbursement made by owner for business

[TonyS.]

I use MYOB for my own business. I often buy items from my own funds
which are actually legitimate business expenses. I don't want to have
to set up a petty cash system so would like to know the best way of
posting these. eg. Stationery, journals Printer toner etc

I want the expense to show up under the appropriate expense account
but I don't necessarily want to be reimbursed as often there may not
be enough cash in the business account.

I imagine that this would be able to be treated as an injection of
equity but am not sure how to process the transactions.

eg?
expense acc: Printer consumables: Toner $60
Payment account: owner equity?

Is this possible/reasonable to do?

Cheers
T.

 

[TD-007]

I use MYOB for my own business. I often buy items from my own funds
which are actually legitimate business expenses. I don't want to have
to set up a petty cash system so would like to know the best way of
posting these. eg. Stationery, journals Printer toner etc

I want the expense to show up under the appropriate expense account
but I don't necessarily want to be reimbursed as often there may not
be enough cash in the business account.

I imagine that this would be able to be treated as an injection of
equity but am not sure how to process the transactions.

eg?
expense acc: Printer consumables: Toner $60
Payment account: owner equity?

Is this possible/reasonable to do?

Cheers
T.

You are right. Post an Expense amount for the item purchased into the
Expense Account and the same amount into your Owner's Equity Account.
A better method, if you wish, is to create a Monthly Expense Report
for yourself, total the report and make a check out to yourself. Then,
you deposit the check back into your business account. This way the
paperflow is much cleaner.

OA

 

[Michael J Davis]

You are right. Post an Expense amount for the item purchased into the
Expense Account and the same amount into your Owner's Equity Account.
A better method, if you wish, is to create a Monthly Expense Report
for yourself, total the report and make a check out to yourself. Then,
you deposit the check back into your business account. This way the
paperflow is much cleaner.

I am not an accountant, but have been running my own business and a Ltd
company for 20 years.

T. that's good advice, but rather than Owner's equity, I'd suggest he
sets up an 'owner's loan' account. Then, when he's loaned the company
enough, just 'repay the loan' with a check.

But IANAA and I'm based in the UK, so there may be accounting issues of
which I'm not aware.

Mike

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--
Michael J Davis

Pictures at http://www.flickr.com/photos/watchman/
<><
For this is what the Lord has said to me,
"Go and post a Watchman and let
him report what he sees." Isa 21:6
<><

 

[Tony Strazzeri]

I use MYOB for my own business. I often buy items from my own funds
which are actually legitimate business expenses. I don't want to have
to set up a petty cash system so would like to know the best way of
posting these. eg. Stationery, journals Printer toner etc

I want the expense to show up under the appropriate expense account
but I don't necessarily want to be reimbursed as often there may not
be enough cash in the business account.

I imagine that this would be able to be treated as an injection of
equity but am not sure how to process the transactions.

eg?
expense acc: Printer consumables: Toner $60
Payment account: owner equity?

Is this possible/reasonable to do?

Cheers
T.

Thank you both for the advice. I have set up an Owner's Loan account.
and will post to this then at end of month do a journal/payment for
the total between the Equity account.

Cheers
T.

 

[opposite.org]

Dear my own business.
I often buy items from my own funds
which are actually legitimate business expenses.
I have the expense to show up under the appropriate expense account
but I don't necessarily want to be reimbursed as often there may not
be enough cash in the business account.

I image that this would be able to be treated as an injection of
equity but am not sure how to process the transactions.

Printer consumables
Payment account: owner equity is possible/reasonable to do?
Daam