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General Accounting Question

I recently used my corporate credit card for a personal expense. Rather than write a check to my business for the amount, I was wondering if there's a way to 'reimburse' the business out of money due me by the business.

I track miscellaneous out-of-pocket business expenses via a Petty Cash account. Every month I write myself a check for the petty cash amount, plus money from general funds as an Owners Equity draw.

What would be the correct sequence of transactions to pay back the credit card account?

For instance, if I owe the credit card $100 for personal charges, and I intend to make a $200 CC payment this month, how would I go about allocating $100 of that payment to Owners Draw (or petty cash)?

Thanks for your suggestions!

-rich-

Reply to
Sugar Hanson
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Let's say you spent £10 of company money on a personal item. At the same time, the company owes you £100 in expenses. You write yourself a cheque for £90, right?

The entries would just be

DR CR Drawings 10.00 Credit Card 10.00

Expenses 100.00 Bank 90.00 Drawings 10.00

That way, you've reimbursed for the drawings you took, and ended up with the correct amount of cash, whilst correctly accounting for the expenses.

IMHO, of course! klw

Reply to
Keith Willis

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