[kenlyne]

:confused: I'm a little confused so any help would be GREATLY APPRECIATED!

I buy and sell on ebay--mostly sell on eBay and buy my goods to sell elsewhere though I used to purchase a lot of it on eBay and sometimes still do

_________________________________________

I have a Business checking account

I use Paypal's accounting assistant to import info into my QuickBooks file to keep track of my sales and purchases--these sales and purchases are recorded into its own account (separate from my checking account and separate from my Owner's Equity account), the type of account is Bank--the name of this account is Paypal

I also have an account set up for Owner's Equity as I have used my credit card to pay for purchases for my business--my understanding is that I enter transactions that I have personally paid for as increases and when I write a check from my business checking to pay myself back, I then record that as a decrease against the Owner's equity. Please correct me at any time if I'm mistaken. :o


What I'm confused about is--some of the purchases that I made on eBay were purchased with $$ sitting in my Paypal account from sales but a lot of the purchases were paid for using my personal credit card. Paypal's accounting assistant automatically keeps track of all transactions and imports them into my Quickbooks company Paypal account.

The question is, I still need to also enter any of those transactions (that are already in my QB Paypal account) using my personal credit card into my Owner's Equity account to keep track of what I need to draw back out when the company starts to be profitable, don't I? Is this the correct way of doing it, or will it be confusing to an accountant?

Also, am I correct in keeping track of these purchases that I plan to resell as Cost of Goods Sold?


It's hard for me to put this down in words--so thank you for even trying to help! :eek:

[CaptainForest]

I also have an account set up for Owner's Equity as I have used my credit card to pay for purchases for my business--my understanding is that I enter transactions that I have personally paid for as increases and when I write a check from my business checking to pay myself back, I then record that as a decrease against the Owner's equity. Please correct me at any time if I'm mistaken. :o

You are on the right path so far…

What I'm confused about is--some of the purchases that I made on ebay were purchased with $$ sitting in my Paypal account from sales but a lot of the purchases were paid for using my personal credit card. Paypal's accounting assistant automatically keeps track of all transactions and imports them into my Quickbooks company Paypal account.

The question is, I still need to also enter any of those transactions (that are already in my QB Paypal account) using my personal credit card into my Owner's Equity account to keep track of what I need to draw back out when the company starts to be profitable, don't I? Is this the correct way of doing it, or will it be confusing to an accountant??

My first reaction to reading this was what??

However, after reading it again, what I think you are saying is:

When you buy something on eBay, you either use your Paypal account (which is a business specific account) or your personal credit card.

In which case, you should then increase your Owner's Equity for the amount of the credit card (assuming you will use your own personal cash to pay the credit card bill).

Two things you should consider for the future:
1) Put more cash into the business “bank” account
2) Get a credit card in the name of the company, so as to make it all a lot easier by not mixing the accounting.

But, what you are doing is fine.

Something else to consider.

When you use your personal credit card to pay for purchases….instead a credit to Owner's Equity to increase equity, you could credit Accounts Payable and then the company can pay you back the money it owes you. Both ways work perfectly fine, just a matter of preference.

Also, am I correct in keeping track of these purchases that I plan to resell as Cost of Goods Sold?

Yes, you are right.