Certified Registered Delivery Mark Made Easy

Certified registered delivery mark

business owners can be very unorganized so if you are the bookkeeper you have to know how to record transactions when the owner Co mingles business and personal funds this means paying business expenses from personal accounts if you have any questions about this topic you can leave them in the comment section below and I'll do my best to help you and of course if you feel the video helped you I hope you will click like and don't forget to subscribe to get updates on new videos that come out all the time very often owners pay non-business expenses from the business bank account now we already did this on May 19th in a previous video when we took company money for vonda's sons dentist with cheque number 903 that we paid from the company bank account and no matter what the money is for or whom it's going to if it's not for business and I mean this business the one that you're keeping records of and QuickBooks Online then the account that records this transaction is owners withdrawals so we use the right of checks window just like we saw in a previous video and put the withdrawals account at the bottom of the screen right there in the category field and then once we put that there we fill out the rest of the check normally and that's how we write a check to anything except for something that relates to this business the one that we're keeping records of now what happens when we pay a non-business expense from a business account well the cash that we took out of the business obviously decreases and we have more owners withdrawals if we're paying on business from a business account so then if we do the opposite if we pay a business expense from a non business account then we have the opposite of withdrawals we have owners capital and whatever expense or service the business used would increase the amount we would record for that expense so let's clarify this and explain why both of these increase when a business owner pays a business expense from a personal bank account well personal funds are used for the business that's the same idea as giving money to the business to help pay business expenses therefore owners capital increases the business still incurred an expense for the service that the business used the business then has another expense that the owners personal funds paid for and it does not matter where the money the owners money came from it doesn't matter if the owners money came from a credit card or a personal bank account or under the owners mattress or from the owners aunt tilly it doesn't matter if a business expense is paid from any account or funds outside the business the account that records this transaction is owners capital for example let's imagine on May 22nd we paid UPS $100 for a delivery today the owner paid cash from the owners personal pocket not company petty cash or company bank cash on hand or company bank account the owner's personal pocket paid a business delivery for vonda's business the company itself has delivery expense because the delivery service was for the company not for vonda the individual or her family basically it means vonda invested another hundred into the business so there are two ways to enter this type of transaction either from a journal entry or from the quickbooks online register window now i'm going to show you what the journal entry would look like but if you've been following the course along you probably already know what to do and i'm not going to save it because i would like to also show it to you how you could record it in the owners capital register window it would be the same result as recording it as a journal entry but if you record it as a transfer it may be easier to track with the other personal funds so we're talking about May 22nd $100 delivery today paid in cash from the owners pocket let's go ahead and record it to make this new transaction we click new go over to journal entry and we already learned how to make journal entries and you probably already figured out in this transaction what would be debit and what would be credit well we know that the expense that we used is debit because we always debit an expense when we have that expense and in this K it was delivery expense and the delivery was from UPS so we can put the name of the vendor a customer here and that helps us keep track of it and that'll be helpful later now the amount of delivery expense was $100 now we know that if one account is debit the other account is credit and that would be vonda's capital or vonda's capital investment and it's under the category of equity and QuickBooks knows that would be $100 credit and we remember capital is on the credit side and we will credit it to make it increase so this is what the journal entry would look like excuse me except for you would have to put it as 2017 but I'm not going to save this this is what we could do but instead I'm going to close this without saving it I was just trying to show you what it would look like because I think you should also have the option of being able to record this in the owners capital register window so we would go to vonda's capital in the chart of accounts like we learn accounting chart of accounts scroll down to vonda's capital and then we would click the register now here in the register it already shows the prior transactions that we had and we could either add it as a journal entry which is the same exact thing we did a minute ago except fitting it into these fields this way instead of the way it looked in the other window or a transfer notice the fields really didn't change we are still limited to what we're physically able to put in let me just move it over a tiny bit now let's leave it as a transfer because you can see the results would be the same I just want to clarify that if you're in the owner's equity window the only difference between recording and as a transfer and recording it as a journal entry if you choose journal entry you have the option of putting any other account you want in the chart of accounts as the other account that goes with the vonda's capital in this transaction you could choose any other account from the list however if you record it as a transfer you are more limited to the accounts that you can choose from when you do this so we have no choice but to record it as a journal entry because the account that's going up is delivery expense and delivery expense will not show up here if we use add transfer we would have to leave it as a journal entry and payee is UPS and the account we know is delivery expense which is somewhere in the chart of accounts delivery expense there it is and of course now here's the question which register are we in we're in the capital register so in the capital register is capital increasing or decreasing if vonda pays a business expense from personal the answer is capital is increasing you will almost never use the decrease column if it's the capital account increase by $100 what does that mean it means delivery expense will also increase and don't forget to put the correct date in this case which is May 22nd and click Save now we can look at the trial balance and we can see vonda's Capital increased if we double click and take a look we can see we have another journal entry from May 22nd increasing it by $100 and if we look at delivery expense in the trial balance you can go down to delivery expense well that increased by this hundred dollar journal entry that we just made on May 22nd [Music] you