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    sweetprincess4's Avatar
    sweetprincess4 Posts: 1, Reputation: 1
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    #1

    Mar 20, 2007, 10:58 PM
    Correcting entries
    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's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    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.
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