When starting my business, there were cash payments I made before I had a business bank account. Although my balance sheet shows the Cash Balance as $0, the Cash Journal does not.
To account for these on my books, I made the following entries:
JE1 (Cash):
Credit Cash 481.99
Debit Outstanding Payments 481.99
JE2 (Misc):
Credit Owner Contributions 481.99
Debit Cash 481.99
JE3 (Cash):
Credit Outstanding Payments 481.99
Debit Account Payable 481.99
JE4 (Vendor Bills):
Credit Account Payable 481.99
Debit Expenses 481.99
I recognize that this is a very roundabout (and incorrect) way to record this payment and I would like to fix it so my cash balance is corrected. I was still learning the Accounting module, so hopefully I can fix my previously sloppy Accounting.
