Personal use of merchandise


C

centigal

Which account should I adjust inventory to if the owner took some merchandise
for his personal use?
 
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R

Rick Sparks

What I did is create an Equity account called "Non-business Expenses".

Do a Journal Entry to Credit the Inventory Expense and Debit this Equity
account.... which will make it go negative.

Then, at the end of the year, Credit this Equity account and Debit the
Owner's Equity account... which will take $ out of the business.. as it
should.

I hope this helps!
 

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