Record personal investment in your company
If you are a business owner and want to invest your personal money, stock, or assets into your business, you must record these. You can easily record the capital you introduce using journals.
To help you record the investment, a default "capital introduced" ledger account of 3200 already exists. If your company is a partnership, to keep track of which partner has invested into the business, create a new ledger account for each partner. When you create the account, make sure you choose the Equity category. You can enter any code you want, but you may want to keep it in the range of 3000 to 3999 along with your other equity codes.
When you record the journal, enter the capital introduced as a credit, and post the opposite debit entry to the ledger account you want to affect.
To record capital introduced
- Go to Adjustments, Journals.
- Click New Journal.
- Enter the date, reference, and a description.
- Enter the information required to record the capital introduced.
For example, to record money invested, enter the following information:
Ledger Account * Details Debit Credit Checking (1020) Capital introduced Amount invested 0.00 Capital introduced (3200) Capital introduced 0.00 Amount invested To record stock or assets, enter the following information:
Ledger Account * Details Debit Credit Asset or stock account Capital introduced Value of the asset or stock 0.00 Capital introduced (3200) Capital introduced 0.00 Value of the asset or stock - Click Save.