[GNC] Owner Contributions & Distributions

[Adrien Monteleone]

Deposits into a checking accounts are debits in the books of the entity that holds the account as an asset. (to your bank, your account is their liability)

Debits increase assets. Credits decrease them. (same goes for Expenses, but reverse for Liabilities, Income & Equity)



Single Transaction
==================

If you deposit *into* Business Checking then:

(in business books)

Dr. Business Checking
Cr. Income account or other depending on where it came from and why

If you deposit *into* Personal Checking then:

(in personal books)

Dr. Personal Checking
Cr. Income (same as above)



Transaction between Your Business & You
=======================================

If you write a check from Business Checking and then deposit it in personal checking then:

(in business books)

Dr. Whatever account explains where the money went (Owner’s Draw perhaps)
Cr. Business Checking

(in personal books)

Dr. Personal Checking
Cr. Income (or other relevant account showing why you received the money)

The reverse would be done in each set of books for when you write a personal check to your business.

Regards,
Adrien




> On Jan 17, 2020 w3d17, at 4:07 PM, Don Ireland <gnuCash at donireland.com> wrote:
> 
> What I was referring to is the checking account I use for my business. When I make what the bank sees as a deposit, I need to account for it in my books.
> 
> My books includes an asset account called Business Checking.  Wouldn't that deposit be considered a credit?  Based on what you've described, it sounds like you'd treat it as a debit.
> 
> I need to account for moving money from my personal checking account into the business account.  I entered it in to my personal check register.  Now I need to separately account for it in the business books.
> 
> On January 17, 2020 3:50:03 PM CST, Adrien Monteleone <adrien.monteleone at lusfiber.net> wrote: