Purchased item in cash from personal account

Accounting
1

I have purchased an item for the business and paid for it in cash. The money was withdrawn from my personal account and not my business QF account. How do I show this transaction on my QF bank account. I am a sole trader.

2

Hello @islandquay

  • Record the purchase invoice as normal.

  • Pay the invoice using the Proprietor Drawings Account.

  • To record the company reimbursing you, record a Money out transaction on the company bank account and tag it to Proprietor Drawings Account.

1 Like
3

Point 2: Do I do this from the Purchase invoice page and select “Log a Payment”
Point 3: On the bank I got to:- What type of transaction is this? and then selected “Salary or other drawings” when I go to tag it to the Proprietor Drawings Account there is a box called “Recipient Name” would that be my name or the name of the person I purchased the item from.
Thanks for your help.

4

Hi
2) You can tag the purchase invoice as paid from the purchase invoice screen or from your drawings bank account by clicking Create new transaction, enter all details and tag it to that purchase invoice.

  1. when transferring the money, your business owes you. back from your business bank account to your private account (which is the drawings account in quickfile), you tag it as a Transfer between accounts. You can do this from your drawings account or from your business bank account screen.

Here is a link to the knowledge base where you can find it more in detail and a lot of other useful information:

Hope this helps

5

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