• From: Bangladesh, Dhaka
  • Registered: 08/16/2020
  • Posts: 26

Topic: How to record money the Owners Put Into and Take Out of the Business.

Dear all,
I haven't much knowledge in accounting and I am searching to add GL entries for the following scenarios:

1. The owner Put money into the business.
2. The owner Get money from the business for his personal reason.

Thanks in advance.

siddiquinoor's Website

  • Registered: 04/19/2020
  • Posts: 60

Re: How to record money the Owners Put Into and Take Out of the Business.

1.   Dr Bank
          Cr Owner's Equity(Capital)

2.   Dr Owner's Equiry(Capital)
           Cr Bank

flpages's Website

  • From: Bangladesh, Dhaka
  • Registered: 08/16/2020
  • Posts: 26

Re: How to record money the Owners Put Into and Take Out of the Business.

Thanks a lot.

siddiquinoor's Website

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,089

Re: How to record money the Owners Put Into and Take Out of the Business.

It is better to deal with a Owner's Current Account rather than mess with Equity/Capital account.

apmuthu's Website

  • From: Bangladesh, Dhaka
  • Registered: 08/16/2020
  • Posts: 26

Re: How to record money the Owners Put Into and Take Out of the Business.

Yes, you are right. Would you please let me know the configuration to create a Owner's Current Account:

Account Type: ?
Bank Account GL Code: ?
Bank Charges Account: ?

Thanks in advance

siddiquinoor's Website

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,089

Re: How to record money the Owners Put Into and Take Out of the Business.

If the owner is regularly taking an advance from the firm/company , then create a Current Asset account in the Owner's name. If the owner is regularly financing temporary deficits of the firm/company, then make it a Current Liability Account in the Owner's name.

apmuthu's Website