transfering cash from personal to business

[Mike or Penny Novack]

On 2/17/2016 12:23 PM, blah wrote:
> I'm trying to figure out how to do this "correctly".
> I keep two books(files) one for personal and one to track a small
> homesteading enterprise. The homesteading enterprise has been operated
> cost-neutral up until now. I used money from our personal cash account to
> purchase equipment for the cattle concern. What I'd like to accomplish is
> correctly moving the cash from our personal Assets:Cash in wallet, to the
> homestead Assets:Cash. It's not a loan, as we don't intend to pay it back,
> it's more of a capital investment. I'd like to simply "give" this cash to
> our little company so that it can buy the equipment. How do I do this?
>
> Thank You,
> Fod
This isn't a really a gnucash question but more an accounting question 
(you'd have exactly the same question no matter how you kept your 
books). Fundamentals of accounting are what you need, but we can help.

a) On your books (personal books) money you have "invested" in the 
business are an investment. The transaction (transferring cash to the 
business) would be a debit to an asset account "homestead business" and 
a credit to cash.

b) On the homestead books you would have an account under Equity 
"owner's share" (remember, in a partnership could be several of these to 
be tracked). So  debit to cash and a credit to that equity account.


Michael