Capital accounts and Expenses claims issue

ideas
1

Hello dears,

please i faced an issue with capital accounts, i’m using capital account as an expense claim, so when some of the partners pays something from his privte money i made new expenses claims and select the payer as partner “Capital Account”

when the company want to pay that partner again and give him his money back a made a new payment and select his capital account then i get three sub accounts (Drawings, funds and profit share)

if i pay any of these sub accounts, there will be credit in capital accounts report in the section of (Expenses claims )

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so what should i do ?

thanks and regards

2

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3

If you have followed the Guides on expense claims correctly, everything will function correctly and show correctly in the reports. Switch to English and repost your screenshots.

4

I do appreciate your fast reply,

really i followed the guide well, i made capital accounts and when some of the capitals withdraw money i made a new payment and select “drawings” when he funds i made a receipt of payment and select “Funds” and when there is a profit share i made a journal entry with the retained earnings and the profit share sub account

but the issue with me when i want to pay the partner back and give him his money which he spend "Expenses Claims " , i don’t know how to give him his money back

I know i should make a new payment and select the capital account then which sub account i should choose ??

Regards

5

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6

Reimbursement to a capital account member is identical to any other form of drawing. This is illustrated in the Guide: https://www2.manager.io/guides/6898. As the Guide also explains, an expense claim by a capital account member is equivalent to a contribution of capital funds. That increases the capital account balance. A payment for a drawing posted to the capital account reduces the account balance.

7

@Tut

thank you sir so much for your response, so please correct me if i wrong

so when i make a new payment to capital account to give him his money back i should use “Drawings sub account”

Am I right ?

Regards,

8

You do not make a payment to a capital account. You make a payment from a bank or cash account, posted to a member’s capital account as a drawing. The result is a debit to the member’s capital account and a matching credit to the bank or cash account.

9

@Tut

thank you so much

yes i make payment from cash or bank account to capital account as drawing

sorry for bad expression “to”

thanks so much :slight_smile:

10

I still think there should be a mechanism to “clear” expense claims sub-account using journal entry if that is what user wants to do.

I’ll add this topic to ideas so eventually this will be improved.

2 Likes
11

doesn’t this affect the capital contribution of the shareholder? because drawing meant reduction of this member participation, and that will affect his profits’ dividend.
am I right, or I missing something?

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12

Yes, you are not taking into account the fact that the expense claim represents a contribution to the business by the expense claim payer.