Business credit card used for personal purchases

Question

How would I enter personal purchases made on a business credit card? I&rsquo;m unsure which accounts to use. Thanks!

Brenda - The Office · Answer

Hi ellisc - all you have to do is enter the Shareholder account number. If in the Purchase Journal, you still CR the company credit card but would DR the Shareholder account....meaning that the Shareholder is expected to pay this back to the company (or it will offset any amount owing to the Shareholder)

Agate · Answer

Hi ellisc: 
 Depending upon the type of business this individual has will determine the account to use. If it is a single proprietor you would use the owner withdrawals account, for a limited or incorporated business you would use the shareholder receivable account. Hope this helps!

Agate · Answer

Farah: 
 I am not sure if Brenda was clear enough, change the account class to "Credit Card" not "Bank".

Sage 50 Canada

Business credit card used for personal purchases

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