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What is the journal entry for Personal expenses paid by partner?
Wiki User
∙ 12y ago
Generally speaking the best way a partnership can deal with this type of thing is to record a withdrawal from the business funds. It's like paying yourself (or your partner) a salary, however, since taxes are paid on these funds already no taxes need be withheld from such a withdrawal. Personal accounts should remain "out" of the equation even if the partner specifically paid "X" amount for personal expenses. Instead, let's say these personal expenses amounted to $5,000, the only transaction that needs to be recorded for this is a withdrawal. Say John pays $5,000 for Bob's personal expenses out of the companies account, a simple recording of this transaction would be something like..
Withdrawal for personal use (Bob) (debit) $5,000
Cash (credit) $5,000
Even a single owner of a business will make a recording for this type of transaction. It is merely a withdrawal of money that he (or each partner) legally own.
Wiki User
∙ 12y ago
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What is Outstanding expenses journal entry?
Debit outstanding expensesCredit expenses payable
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the Journal entry for Additional capital brought to business partner Capital A/c Dr. To Partner Capital A/c
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There is no general entry for those expenses which are not belongs to company's normal operating business activities and no entry required.
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[Debit] Outstanding expenses [Credit] Cash / bank
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No journal entry for net income it is the difference between total expenses and total revenue and it is the balancing figure
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What is the journal entry for electricity payable?
Debit electricity expensesCredit expenses payable
What is the journal entry when you receive a cash refund?
Debit cash refundCredit expenses
Can you show the journal entry for expenses incurred on food?
debit food expenses / meals and entertainmentcredit cash / bank
What is the journal entry for deferred revenue?
As it is a advance receipt the journal entry would be cash dr. to deferred revenue
What would the journal entry be if expenses are paid out of personal cash?
I think that you mean a debit which goes on the left side of the journal or in your record book
