Going through bank statement and entering debts in the register. Came across a payment for a credit card in which some items purchased were business and some personal. What category does a $5,000.00 payment to Discover Card fit?
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Going through bank statement and entering debts in the register. Came across a payment for a credit card in which some items purchased were business and some personal. What category does a $5,000.00 payment to Discover Card fit?
Dr the individual purchases to the appropriate expense accounts, and cr the respective supplier accounts, or a sundry creditor account if you don't have individual accounts for wherever the card has been used. Then to record the payment of the credit card bill, Dr the supplier accounts, or sundry creditor account, and cr bank account.
Obviously the personal purchases should be recharged to whoever made them.
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