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Peachtree 2007 question.

"John Hastings" wrote

Setting up the books correctly is an important step that results in eons of not having to deal with the initial errors you can make in putting an accounting system together.

The cash contributed should result in a debit to the bank account and a credit to partner's equity.

He shouldn't look at it as a loan, although he can take it out at some later date, he'll not get interest on his contributions amount as he would if he loaned the money to the business.

You may want to track the equity contributions, as well as withdrawals, per partner, for basis purposes.

Reply to
Paul Thomas, CPA
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"John Hastings" wrote

Well, the things you spent money on were either a start-up expense, furniture and equipment, inventory, or some other type of asset account.

Expenses paid prior to opening would be one of the above, and shown as an asset.

They'd still be a partners equity contribution (credit) entry.

Ok, so you don't debit cash, but you'll debit the asset the expense relates to.

You need to get the various accounts set-up before entering any $ amounts.

Then journal entry in the opening balances, expenses, etc.

That's OK. See if there is a local college that has a Peachtree (or basic accounting) class as part of their continuing education program.

It'll help in dozens of ways.

Reply to
Paul Thomas, CPA

Hi, I've just bought peachtree pro 2007. My partner borrowed $17,000 to start a small business with. Where do I enter this information? I selected a default business of computer services, and this has a traditional chart of accounts for this type of business. Since it is a partnership. How do I put in the money to get started? Does the 17k go under partners contributions? and get balanced against long term liabilities? There doesn't seem to be a start up capital account.

Reply to
John Hastings

The problem with that I think is that we spent a few thousand before the bank account was opened. So there are no checks to track it, just receipts. So I was thinking...

17,000 partners contributions as an assett debit
Reply to
John Hastings

You do not have to pay by check for it to be considered a business expense. You can record the receipt of cash as a capital contribution from the partner and then use the cash to pay for rent etc or you can record simple debit the expense/asset acount and credit partner's contribution

These beginning entries can be confusing. You should talk to an accountant. Let him/her set up the initial entries for you.

HS

Reply to
HSalim

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