company dorector's personal Credit Card - how to track/account for in Company gnucash?

[Derek Atkins]

Mike or Penny Novack <mpnovack at mtdata.com> writes:

> On 1/23/2017 6:44 AM, __ wrote:
>> we have a director of the company who has a personal credit card which
>> in 90% of payments is being used for company expenses.
>>
>> generally I'd put is as a sub-account of that person's expenses (with
>> is a liability account)
>> My challenge is that I want to track all movements of that Credit Card
>> even though some of which are non-company related personal expenses.
>> Is there any way to do this right?
>>
>> looking forward to suggestions
> I am not an accountant. I think the CORRECT way to handle this is to
> forget for a moment that this is one of the directors. Treat it just
> like if any other employee of the company used personal funds for a
> business expense and so had to put in for a "reimbursement". The fact
> that a credit card was used (as opposed to a check or cash) not
> relevant.
>
> This isn't quite the same situation as when the proprietor of a sole
> proprietorship or a partner of a partnership does it (and so there is
> a "drawing" account). In that case, SMALL (incidental) amounts might
> be treated as a "negative draw" (for really large amounts, best
> consult a professional, as might be considered "an additional
> investment")

I assume tha the card is being paid directly from the company?  Or are
you reimbursing the director?  If the company is paying the card
directly, this is exactly what the 'Card' setting is for on the Employee
Expense Voucher.

> Michael D Novack

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-derek

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
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