Need help with accounting concept
jimlynch1 at gmail.com
Thu Jan 26 13:03:14 EST 2006
Thanks, I'm keeping my books on gnucash only so the answer was exactly what
On 1/26/06, Dale Alspach <alspach at math.okstate.edu> wrote:
> You are increasing your equity in the business by paying these bills out
> pocket. I don't quite understand whether you have mixed system (personal
> and business) or the gnucash file contains only business entries. This
> difference will affect the transactions a little.
> If you are doing only the business, then I would set up an owner's equity
> account. Every time you pay a business expense out of your pocket you
> should credit that account and debit the expense acount. If you take money
> out of the business then you will need to decide whether you are paying
> yourself a salary or you are drawing down the owner's equity. You probably
> want to contact an accountant about the right way to handle this if your
> business might be scrutinized by the government.
> Dale Alspach
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