Banking

Tracking an owner's expenses

• Using personal funds to pay for company expenses. If an owner or a partner purchases services or supplies for the company and uses personal funds to pay for these items or services, he/she can account for the expense by increasing his/her share of owner's equity.

• Using company funds to pay for personal expenses. If an owner or a partner uses a company check or petty cash to pay for personal expenses, he/she can account for the expense by decreasing his/her share of owner's equity.

Step by step

• To pay company expenses using owner's personal funds
• To pay owner's personal expenses using company funds

Related topics

• Spending Money