Need help with accounting concept

[Dale Alspach]

You are increasing your equity in the business by paying these bills out of
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