Which GL account for personal sale items?

Options
MM_7769277
MM_7769277 Member Posts: 115 ✭
edited July 2020 in Accounts Hosted
Our manager occasionally uses the company PayPal for receipt of funds when he sells personal items on eBay, then he transfers the $$ from the business account into his personal bank account.

I reconcile this by doing a Spend Money using Banking > Write Cheques, but which GL account should I use to post it to? I don't really want to use "miscellaneous".

Thanks in advance!

Comments

  • Charley
    Charley Member Posts: 542 ✭✭✭
    edited January 2020
    Options
    It doesn't matter what you call it but seeing as it is not a business income then the income and expense would probably be better going into and out of the same GL account, thus bringing it back to zero each time. I would personally use journal entries for both entries.
  • Kay Laws Accredited
    Kay Laws Accredited Member Posts: 72 ✭
    edited July 2020
    Options
    Hi MM Personal. Transactions should be allocated to Drawings or Directors loan . Hope this helps Kind Regards Kay kmlbookkeeping@bigpond.com
  • John Graetz
    John Graetz Member Posts: 1,651 ✭✭✭
    edited December 2016
    Options
    Hi MM

    The transactions that you detail have nothing to do with the business and are therefore strictly Agency Transactions, in other words, you are acting as an Agent for the receipt and ultimate pay out of the receipts.  As such, I would be creating a Liability Account and call it something like Manager's Suspense Account or "Joe Blow Suspense Acc.  Then as Charles suggests, all transactions would go through this same account.  By using a specific account for these transactions, you will have little problem in reconciling them because each one should be readily matched.  You can even do a reconciliation of this account in the same manner as you would do for a bank account.  When you enter the cheque, just code it to the relevant Suspense Account that you create.  Also bear in mind that as these are not Company transactions, you do not account for any GST which might be in those transactions.
    John L G

Categories