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lornev's avatar
lornev
Experienced User
3 years ago

Re-Imbursing Business Account

Hi

My boss inadvertently used his business debit card to pay for a personal expense. It is a Company. 

This money needs to be paid back to the business. 

Firstly, how does the transaction get recorded (personal expense paid by business) and when the amount is paid back to the business how should that transaction be recorded? 

This transaction involves GST paid and because it is really a personal expense the GST doesn't need to be recorded so would I use N-T. 

Thanks for help in advance. 

  • LRBooks61's avatar
    LRBooks61
    Ultimate Cover User
    3 years ago

    Hi 

     

    If your boss is the owner you could post both the transactions to drawings.

     

    Otherwise record both the transactions in exactly the same way

    That is the payment to an account (  personal expense paid by business) with tax code N-T

    and the repayment to the same account  (personal expense paid by business)  with tax code N-T 

    This effectively cancels itself out

     

    Hope that is helpful

     

    Lisa

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