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    hacres01's Avatar
    hacres01 Posts: 1, Reputation: 1
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    #1

    May 14, 2008, 06:12 AM
    Deposits from Proprieters how do you expense?
    We have a new business started up, we have deposits from both partners. When I put them in quick books I know I should probably distinguish and post to separate accounts, but do I use the account titled Due to Officer or Proprietorship Account? We also have deposits from our other business which should be repaid later on, do I use the Due to Hacres account to record those deposits?:) :)

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    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    May 14, 2008, 10:21 PM
    Assuming these "deposits" from the partners are meant to be their share of the ownership in the partnership, then they go to their respective capital accounts. i.e. like John Doe, Capital and Jane Doe, Capital. These are equity accounts and represent their net share of the company.

    If the deposit from the other business is to be re-paid, I'm assuming this means it was only meant to be a loan as opposed to ownership. If that's the case, it belongs under a payable, a liability account. You can just call it Note Payable - Hacres if you like. (You can actually call the accounts any name you like, but if someone else has to do anything with your books and your taxes, etc. names that have meaning to them are useful.)

    If you are that unsure of how to set up your accounts and get everything started, I might suggest you consult an accountant to help you get your quickbooks set up.
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