One of our suppliers was paid via our parent entity how do you key this in reckon accounts. Would I need to do a journal for loan etc

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Marissa

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Posted 2 months ago

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John Gibson, Accredited Partner

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Yes, plus you need to clear the Bill from your system...Generally I recommend to clients that they 'Pay' the Bill via a dummy bank account (or 'Cash Account') then do a journal debiting the dummy account / crediting the parent entity account (could be liability or asset account depending on the current inter-entity loan balance). The parent entity would (should) in their accounts be allocating the payment directly to 'Loan (your entity)' (and not to an expense account) if they are going to recover the funds from your entity at some stage.


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Marissa

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Great thanks John I actually processed these payments as per your advice. On another note if a personal credit card was used to pay these bills would I process this the same way
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