some of you have PayPal and other situations that might require that you split a transaction a split
transaction which is usually for PayPal is a situation where there is more than one account
to choose when recording that transaction when you earn money from a customer and that customer pays
you through PayPal PayPal takes some of the money from your income deposit from that customer the
amount of money they take out for themselves is a fee and you could consider that to be a
bank fee the same way your bank takes fees for certain transactions for example let's imagine
on July 25th we receive service income of $500 into the PayPal account however PayPal took out
a $10 fee and the fee is recorded in the bank fees expense account and the transaction number that
PayPal gave you was the 7 1 1 7 in this case $490 is actually going into the account and the paypal
account should only increase by $490 and the bank fees account should increase by $10 the whole 500
is actually income let's take a look on how to record this from the main menu click banking make
deposit you have to make sure that the PayPal account is chosen sometimes when you choose
the PayPal account you get this message reminding you that you could set it as your default account
you should click the don't bother me box and this message will not pop up again just click
OK and again make sure that your PayPal account is chosen the date that the money was deposited
into your PayPal account with July 25th we don't need the name but what we do need
is which accounts represent the reason why the PayPal account is now increasing the main reason
is income deposits now the amount of the entire income that was earned is $500 and $500 should be
the amount on the row of income deposit because that's how much hold and earned and that's how
much as income should go up however on the next row you should click directly below that account
and then click on the arrow and choose bank fees expense now the income is positive to the PayPal
account the bank fees is negative to the PayPal account so put negative 10 and then push the tab
key on the left side of your keyboard now look down at the deposit subtotal and you can see
that we earned 500 but the bank took $10 actually PayPal in this case as the bank and they took $10
and that's why the amount PayPal is going up is 490 now can you predict the results well income
will increase to 3,500 because you earned $500 in income you will notice the PayPal will increase
to only 890 not 900 because we have this as the amount that's actually going in and of course
bank fees will increase from $35 to $45 we click Save and close now bank fees are $45 PayPal is
$890 an income earned is $3,500 you should also notice that the PayPal register also shows this
very same transaction when we click to open the PayPal register you can see that this four hundred
ninety dollars has been deposited into PayPal on July 25th and the account is split if you want to
see what split you can double click and go back to the original window that you actually used to
record the deposit if you want you can save the make deposit window to the icon bar click view a
view add make deposit to the icon bar and click OK and now if you ever have a split deposit you can
click here and record it here and the results will show up the same in the trial balance as
well as the register of the account you should know that checks can also be split for example
July 26 paid staples 200 from the PayPal account 150 of that 200 was for supplies expense and the
other 50 was for a web camera which is an asset transaction number 4545 the proper way to record
this transaction is to make paypal decrease by 200 $150 increased to supplies expense and a $50
increase to an asset let's take a look at how to record it from the main menu click banking
write a check and the write a checks window opens up make sure that you're paying from the correct
account in this case PayPal and the transaction number goes in the check number field has four
five four five now staples is the payee so you should choose pay to the order of staples but be
very careful how you put in the rest of the check the money amount that's actually decreasing the
PayPal account is $200 the date that the money is coming out is July 26th now notice you put
200 at the top of the window and at the bottom of the window books copied that number down here you
have to be very careful how you do the bottom of the window we are going to split this 200
by deleting it and splitting it over two lines okay so make sure it's gone now in the account
field click in the account field click the pull down arrow now most of that 200 goes to supplies
expense so on the same line as supplies expense you put the money amount that went specifically
for supplies so you're going to choose supplies expense here and then the money amount you're
gonna type it as a hundred and fifty now when you push the tab key it'll save the money amount in
the field you must make sure that the total money on the bottom is equal to the total money on the
top of the window that means the next row needs to be $50 and $50 in this case when specifically
two assets so we click the arrow next to the $50 and we click asset because the transaction said we
paid them 200 in one transaction but a hundred and fifty was for supplies and the other fifty
was for assets when we click Save and close at the bottom of the window assets has increased by $50
PayPal has decreased by $200 and supplies expense has increased to a hundred and fifty dollars now
let's put the writer checks window in the icon bar if it's not already open go to the main menu
and click banking write a check at the moment the window is the active window in front of you
click view and write checks to the icon bar then click OK now you have the shortcut right up here