Question by Glenn P: I’m using QuickBooks Pro 2007. I need to account for a deposit of personal funds into the business account.
$ 400 dollars of personal funds were deposited into a business account. How is that properly accounted for in Quickbooks in the business account? Thanks
Answer by Joseph T
First, you can not comingle personal and business money in a business. It really messes up the books. There is no proper way to account for the money.
If that is not the case, and you are giving money to the business you can do it one of two ways – you can invest it in the business or loan it to the business. Investing you would book it to your Equity account (you need to do a journal entry, debit Cash, credit your Equity account), loaning it you would book it to Liabilities (debit cash, credit loans payable).
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