Looking for opinions:
I start a business, put $12,500 of own money into business. I want to record this transaction in QuickBooks and then when the company starts making money, I want to be able to take it out at some future point.
Also, I want to transfer $1,000 of this $12,500 to petty cash and write a cheque payable to petty cash.
Looking for how to enter this in QuickBooks.
Thanks in advance,
Create sub accounts under Owner Equity called Owner Draw and Owner Investment.
Transactions dealing with investments from the owner(s) use the Owner's Equity account(s). You can make sub accounts under Owner's Equity for Owner's investments and Owner's draws.
??? Sounds like a lot of money to put in petty cash. Understand that "petty cash" is not a place you can put money and take money out without controls. The money withdrawn STILL has to be a business expense and still needs to be recorded properly.
The helpfile within QuickBooks has all the information you need to record owner equity and investments, and petty cash transactions. Do a search on "owner investment" and "petty cash".
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