asset.

QuickBooks - How To Record Certain Transactions

1. Let's say you just got a loan. How do you record this? First of all, did the money go to the bank, or did you make purchases with cash? Getting the details is important. If it's a loan and the money is in the bank, then record as follows:

Bank + debit

Long term liabiliy - credit

If equipment purchases were made, then record this way:

Equipment (asset) + debit

Long term liability - credit

When you make payments, record the loan payment against the liability account, and include your interest payment as an expense for interest expense. Don't touch the asset account. You must keep this figure to show the "worth" of your purchase.

2. What if you received a rebate or refund check? This is NOT income. Record the deposit against the account that the original check was writtten from. If you got a refund check for insurance, then use insurance account. If it was cost of goods sold or some other expense, then use that account.

3. Company credit cards need to have their own account, so you can record payments and purchases. This should be RECONCILED monthly just like your bank statement. This will save time at year end for your accountant.

4. If you have more than one company, and you let each company "borrow" funds from the other, BE CAREFUL. Make sure these particular accounts are set up correctly.

Company A borrows from company b. Company A should show a loan (liability). Company B should show an asset (loans to company A). This also applies if you give employee advances. This is an asset.

Author:.

I am a certified QuickBooks pro advisor. I started my accounting career in 1979 fresh out of high school. I worked for various cpa firms prior to starting Quick Bookkeeper Incorporated in February 2001. The continuing focus is to help business owners with their accounting questions and their frustrations regarding QuickBooks software. My staff and I realize there is a link missing between a business and its accountant. We are here to fill that void for you. Our services include: QuickBook...

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Have a question for Janie?

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heidi
23rd May 2014 10:06am
I take in customer deposits for product ordered. Once the product is rec'd by the customer I know I need to make a journal entry debiting it customer deposits but what account do I credit?

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parveen
27th May 2014 12:50am
Hi Janie, Our company has recently purchased share purchase of another company from the current holders. How do I record this into QBO please..? Many thanks in advance.

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Susan
27th May 2014 9:33pm
we have booth rental in our salon. The stylists use our credit card machine. At the end of the week we need to give them back their money minus 5% credit card processing fees, What account is this charged to? Refund to Stylist? COG sold? It is definitely not income to the salon.

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Kristi
2nd June 2014 4:47am
We sold one of our businesses on credit. We receive a monthly payment from the buyer for 60 months. How do I account for this in QB?

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Margaret
10th June 2014 11:14am
The business purchased an item for a friend using the Company credit card and debit card. The friend is going to make payments over the next four years to repay the company. How do I set that up in QuickBooks Pro?

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Erryyk
1st July 2014 3:14am
Hi Janie. i account for two separate companys owned by same individual. How do i record "Company A Purchases goods for Company A & B with same cheque" in quickbooks record

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Michelle
22nd July 2014 12:10pm
Hi Janie ~ We receive small payments from IFTA - Highway Use/Fuel Use Tax. How/Where should I apply these sorts for "refunds"? Thanks

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Elizabeth
25th July 2014 5:47am
How to show an income received on behalf of someone.....which has to be paid later??Please help

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Elizabeth
25th July 2014 5:48am
How to show an income that has been received on behalf of someone......which has to be repaid later??

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Toni Austin
25th July 2014 9:04am
where do I put cable transfers and bank drafts in quick books

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