Does the owner of your business co-mingle funds and withdraw and invest cash to and from the business? Owners normally give and take money and other assets to and from their business all the time for cash changing hands between the owner and the company. This is normal.

You can use the same check window, expense window and deposit window that we have been discussing all along to record our normal cash transactions. These transactions must be recorded, however, in owner’s equity type of accounts, instead of the income and expense accounts that we were using before.

The owners of a company are a separate financial entity from the company they own.

Do the owners sometimes bring their own personal assets to work to be used by the business? Does the reverse happen? Do the owners sometimes take business assets home for personal use? video 34. This is a non-cash transaction. It’s an investment and withdrawal of assets by the owner. How do we record that?

Make a journal entry. When owners give to the business it’s a credit in capital investment. When owners take from the business it’s a debit. Assets removed from the business are valued at purchase cost. When the asset is taken from the owner’s home and given to the business, it is valued at fair market value.