I am new to this application and I am using Manager Desktop version 21.7.13 at the moment. This forum and Guidelines have been so helpful that it is usually able to solve all the problems encountered in this application but not this time around.
I am currently facing the accounting entry or posting in relation to the capital injection by the owner or fund contributed by the owner. I had searched the guides and forum for the answer but to no avail. In my previous accounting system, I understand that the accounting entry would be as follow:
Credit – Fund Contributed By Owner
Debit – Bank Account or Cash Account
Under this application, my understanding from the guidelines is that I need to do a journal entry for the above after enabling all the relevant tabs (i.e. Bank and Cash Accounts, Control Account, and Chart Accounts) but I still could not find the bank account or cash account to be debited. It is not in the dropdown list. With that, the auto result was:
Credit – Fund contributed by owner
Debit – Suspend Account
My question is there something that I have missed out on in the process. Why I could not find the Bank or Cash Account in the Journal entry. Any solution on this? Your input and expertise are appreciated.
Bank and cash accounts don’t have journal entries, only payments and receipts, otherwise one runs the risk of not balancing with the bank statements. If the owner deposited money into the bank account you should pick it up when you reconcile the account transactions.
Thank for the input. I have not reached the bank reconciliation yet. So I am not able to visualize What is the posting/accounting entry if the owner deposit money into the cash account?
By the way, what do you mean that “If the owner deposited money into the bank account you should pick it up when you reconcile the account transactions”? Are you referring to Bank Reconciliation?
In receipt select the capital account and then it prompts for the user and then select the subaccount (drawings, funds contributed, Sharing of profit).