Moving money from one biz to another


O

Optical

I own two businesses and at one point I had move funds from one company to
the other company. The money was used to fund the operation of the second
business.

How do I treat this transaction?

Thanks.
 
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L

Lance [MSFT]

Assuming you have an equity account you use to track owner draws, to record
taking money out of the first business, you would transfer funds from the
cash/bank account to the owner withdrawals account

To record that you invested money in the other business, you record a
journal entry debiting the cash/bank account that holds this business's cash
and crediting the equity account you use to track owner investments in the
business.


This posting is provided "AS IS" with no warranties, and confers no rights
 

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