Investment Queries (Business Start-up)

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Expense claims would be a good way to enter these contributions. Read this Guide:

Use expense claims

Expense claims record expenses incurred by people on behalf of the business. These can be of two types: Actual expenses paid with personal funds that, in other circumstances, could have been paid directly with company funds and posted to appropriate accounts. Examples include: travel expenses for company business charged to an individual’s credit card, cash purchases of office supplies, or materials bought locally out of pocket on an emergency basis to finish work at a customer’s site. All…

Because you are partners, you need capital accounts. Read this Guide:

Capital accounts

Capital accounts are used to track funds contributed, drawings and share of profit of business owners. They can be adapted to suit any type of business entity including sole proprietors, partnerships, companies, trusts and funds. [image] Sole proprietorships only require a single capital account. Partnerships require a capital account for each partner. Trusts require a capital account for each beneficiary. Funds require a capital account for each member. [image] By default, capital accounts …

For these transactions, the two topics are closely related.

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what is the correct way to allocate these expenses.

That depends on your chart of accounts. There may also be local regulations to consider as far as what is capitalized versus what is expensed. Consult a local accountant.