Scenario: Owner buys new computer (capital) with personal funds.
This is the way I would think it should be done
- Create new liability Account
- Create new asset account
- Narration -> New computer
- Computer equip -> Debit -> $1000 with 10% GST
- Owners loan -> Credit -> $1000 GST Free
GST worksheet has:
- GST sales of $1000 which is not correct, it seems liabilities and equity are being counted as sales. I have made no sales at this point.
- $1000 as Capital Purchases and $90.91 GST payable which is correct
The Summary Financial statement has $1000 under Liability-> Owners loan which is correct.
Question 1: Is this not the correct way to do it? What am I missing, I’am no accounting guru.
Question 2: I’m using version 14.4.13, but can’t find the Documentation tab mentioned in the Forums, in-fact I cannot find any documentation.