sweetprincess4
Mar 20, 2007, 10:58 PM
Which accounts would I use to correct an entry, where a bill was posted as being paid and later it was realized that the bill was paid with the owner's personal money?
CaptainForest
Mar 21, 2007, 02:16 PM
The JE that was done:
Dr. AP – Company 100
Cr. Cash 100
What should have been done:
Dr. AP – Company 100
Cr. AP – Owner 100
What needs to be done:
Dr. Cash 100
Cr. AP – Owner 100
When you pay the owner his money,
Dr. AP – Owner 100
Cr. Cash 100
If you just go and pay him the cash today, you don't really even need a journal entry since the journal entry has already been made.