and now we will learn the last new type of transaction that you need to know after this
video you have learned every possible kind of transaction that you need to know about
when doing minimum QuickBooks and it is paying business expenses from a non-business personal
account well anytime money comes from a personal account like a personal credit card or personal
bank account and it pays for something related to the business if money is going from personal to
business we say that in every one of those cases that money amount is Holden's capital that means
it's the money that Holden invested from his personal into his business our QuickBooks file
has only business accounts so if Holden's paying from his personal checking or personal credit card
how do we record it what do we do first we set up a register for Holden's capital we already
have Holden's capital as an account in the chart of accounts we can open up a register window and
put it up in the icon bar the same way that we did for Holden's other financial accounts each
payment for business goes in the deposit column because it increases Holden's investment into the
business let's take a look how to set this up now remember to open a register window click banking
use register if you click the pull down arrow you get only the accounts and the chart of accounts
that are able to be opened in a register window fortunately for us capital or Holden's capital
can be opened in a register window and then we click okay now remember yours might not open
with the one line checked off so normally when a register window opens there are two lines for
every one transaction if you remember our first set of videos Holden had a $900 investment that
he put into Chase Bank or excuse me that he put into that he put into TNM Bank and he also had
a 200 dollar investment that he put into Chase Bank so the this is the way those two previous
transactions look in the Holden's capital account from the videos at the beginning of
minimum QuickBooks once again I strongly urge you to click the one line box so it's easier for your
eyes to see every transaction across one line now that the register looks the way you want it
to look you click view ad Holden's capital to the icon bar and then click OK now if we close it out
we can go directly to the icon bar and open it up remember every time Holden pays from his personal
for a business item that money amount goes in the increase column because it increases what
Holden invested in his business it does not matter which non-business account Holden pays
from he could pay from his personal bank account to buy something for business he could pay first
from his credit card personal credit card account to pay for some business expense or he could even
take personal cash from hid under his mattress or from his wife's pocketbook but if the money
is paid for business it doesn't matter you still have to record it in the capital register that
we just opened up for example let's imagine that on July 22 Holden paid for a business delivery by
FedEx with his personal bank account check number 61 for a hundred and twenty five dollars because
he paid from a personal non-business account for a business expense we record this in the capital
register so we open the capital register from the icon bar the date was July 22nd July 22nd
now this was checked number 61 from his personal account so even though we can't record it from
his part in his personal account we can still take the source document number and put it in
the reference number field the payee was FedEx and the reason we paid FedEx is delivery expense
and the money we paid which is a hundred and twenty-five dollars increases the amount that
Holden actually invested in his business and now we click record let's take a look at the next
one the next one says July 23rd Holden charged a business repair job to rex repair from his
personal credit card here's the slip number and it's $320 in the same capital register we put
the date of the charge July 23rd the reference number is 55 441 that's what was on the slip the
vendor we paid was Rex repair and the reason we paid him was repair expense now the money
amount that Holden charged will increase his investment in the company so on the one hand
the company has more repair expense but on the other hand Holden invested more in the company
to cover the repair expense we click record and then this increases what he invested and of course
in the trial balance you can see repair expense has in - $420 this last one is very interesting
July 24 Holden paid for a business lunch with his biggest client he now has a new expense that
he has to put in the chart of accounts meals and entertainment $75 cash came from his wife's purse
and the restaurant gave him receipt number one seven one eight one nine let's take a look how
to enter it we put July 24th receipt number one seven one eight one nine we can leave the payee
blank because we don't have to put the name of the restaurant if we don't want to but there is
no meals and entertainment expense on this list so what do we do we can add an account on the fly
you can click add new QuickBooks already knows that this is an expense type of account if not
you would put it there and we'll make the name meal with put a capital meals and entertainment
click Save and close and now you can see meals and entertainment has been added as an expense to the
chart of accounts and of course we put the money amount seventy-five dollars of his wife's cash
has been invested in the business in the form of treating the biggest client to a beautiful dinner
we click record and now notice the ending balance of Holden's capital is sixteen twenty both in the
register and on the trial balance Holden's capital sixteen twenty but for the very first time this
new expense meals and entertainment has shown up in the trial balance as seventy five dollars
there's only two more things to remember video nine shows how to transfer money into a business
account from a personal account so if that was a question on your mind review video number nine
in this series you should also remember video number twelve shows all about owners withdrawals