General Ledger

by Warren
(Anderson, IN USA)

When an owner buys goods or services with their personal money with the intention of being re-paid later, how is this shown on a general ledger? In addition to the general ledger, are these shown on another ledger(s)?

Personal money used to pay for business expenses is usually journaled by debiting the expense account and credit Owner's Contributions (equity) account.

If the money is intented on being repaid later, you can setup and credit an Owner's Loan (liability) account instead. When the money is repaid, you will credit the bank account and debit the Owner's Loan account.