Sometimes you need to record unusual transactions and the place to do that is as a journal entry. 33.

with a journal entry, you change the accounts directly without making a transaction document or changing any other area of data in QuickBooks online.

Why do we even do journal entries anyway? We do them when there is no pre-set document. An example would be when the owner invests or withdrawals a non-cash asset.

Paying Business Expenses from Personal Accounts

35. This type of transaction requires a journal entry because the company has no documentation for the transaction. The owner pays for something the business can use. The owner’s capital investment goes up and the expense goes up. The owner may pay for a delivery for example or perhaps pay for some supplies or utilities. It’s like the owner moved money from his/her account to the business’ bank account and then the business purchased some expense. We will not include the business bank account in this transaction since it’s like money goes in and right out again.

You must save the receipt and source document of any transaction where personal funds paid for company expenses. You must attach the source document to the journal entry otherwise there will be no way to verify this transaction. You can take a picture of it or scan it into the computer and attach it.