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How to go about posting this?
11-10-2012, 06:34 AM
Post: #1
How to go about posting this?
I am working on the books for a Ltd. company which haven't been done for over a year and I've hit a bit of a snag.
Here's the situation:
- The owner has been making purchases for the company on his personal credit card and posting them as Shareholder Loans.
(ie. Dr. Gas Expense/Cr. Shareholder Loan)
- Most if not all of these purchases were for reimbursable expenses that he submitted to companies that he worked for (seperately from his billings).
- These companies paid him by cheque and he deposited these cheques into the company bank account.
- These deposits haven't been posted to his QuickBooks yet.

My problem is twofold. Firstly, I don't know how to post these cheques while at the same time reducing the shareholder loan account. Secondly, going forward should these personal purchases even be posted to his books?

Any help would be sincerely appreciated.
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11-12-2012, 10:35 AM
Post: #2
RE: How to go about posting this?
If he deposits the money to the bank, you can debit cash in bank, credit cash expense.
That cash belongs to the owner, and if he withdraws the cash, then you have a journal entry, debit shareholders loan credit cash.

Now you have reduce expenses, and also reduce shareholders loan.
What is the business of this company, and are the gas expenses reimbursable expenses incurred for the operation of his business.
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11-14-2012, 07:47 AM
Post: #3
RE: How to go about posting this?
Thanks angelface. The company provides project management and estimating services to commercial contractors. Yes, the gas expenses are incurred for the operation of the business.
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