Make a purchase with own money

How can i record a purchase that i am making with money that I spend for my business, but its not the business’s money? Can i keep track of the total amount that i have spended this way?

I want to have 2 separate records for 2 contributors (me and my father) and that is money that won’t be returned back to us. I just want to be able to track “how much” i have spend.

I have done it with capital accounts but i think it shows the totals in the wrong place (equity).

Every time that i am purchasing something i am doing a cash addition to an account that i credit it on a capital account and then i am spending the money using the actual purchase invoice from a supplier. Is that a good approach?

Capital accounts are the correct place to post your equivalent contributions to the company. And they are equity accounts. So in that respect, you are doing things correctly. There are two ways to record these contributions. The first is with journal entries, debiting the expense accounts appropriate for whatever you purchased and crediting the capital account of whoever made the purchase. The other way is using expense claims. If you both are already set up with capital accounts, your names will appear in the Members type of expense claims payers. The purchases will go directly to your capital accounts. Expense claims were designed for just this type of situation. See this Guide: https://www.manager.io/guides/best-practices/expense-claims.

That was very helpful.