Accounting for customer payments through personal checking

[Maf. King]

On Thu 24 April 14 07:41:57 Brian wrote:
> I use a free online service that allows customers to pay with their debit
> card, but this service is linked to my personal checking account. As I get
> money in my personal checking through this service, I will periodically
> initiate a transfer to my business checking, but it is not an immediate
> transfer. How do I account for this in my business books, without making it
> look like I'm just contributing endless amounts of my own money to the
> business (i.e. through an Owner Contributions equity account)?
> 

Hi

The money in your personal account is, in effect, a loan to you that the 
business has made.

therefore, it would appear in the business books as a asset account - when you 
make your occasional transfer, you move the money from that asset to business 
checking.  When a customer makes a payment, you transfer from Income to 
Asset:Held_in_Personal_Account.

HTH,
Maf.