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?