Paying Expenses from Non-business Account
Posted: Wed Sep 16, 2009 12:45 pm
After people's help for book-keeping for a friend's business.
It's just a sole trader business; he has a separate business account but also sometime uses cash, or credit card which is linked to a non-business account that his everyday personal transactions also go through.
What is the best way to account for this in MYOB? His old book-keeper has sent up a Loan account that was credited every time he purchased business related items/services but not with funds from his business account. She then also debited this account each time he took money out of the business for personal use. Is this the best way, or is it better to do through owner's equity/owners drawings accounts?
It's just a sole trader business; he has a separate business account but also sometime uses cash, or credit card which is linked to a non-business account that his everyday personal transactions also go through.
What is the best way to account for this in MYOB? His old book-keeper has sent up a Loan account that was credited every time he purchased business related items/services but not with funds from his business account. She then also debited this account each time he took money out of the business for personal use. Is this the best way, or is it better to do through owner's equity/owners drawings accounts?