Using owner's money to pay business utility bills

by Seema

Q: If the owner pays some phone and electricity bills for home RM215 and office RM323 by using her saving money, what would the double entry be?

Is this entry correct?

Dr Utility Expenses RM323

Cr Owners Capital RM323

Thank you in advance.

Yes, the entry above is correct.

The saving money is personal money, not business money. By paying for the business expense ("office") using personal money, she is essentially "investing" more money in business operations, which is exactly what capital is.

Well done Seema!

Comments for Using owner's money to pay business utility bills

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by: Informative

Thanks for sharing. I must say this is such an informative and helpful site.

mujay jwab dain is email pay
by: [email protected]

For example agar owner business ka bill pay krta hair Jo 100 hair aur who wapis b lay ga

Utility expense 100

Owner payable. 100

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