You have raised a number of points, @torabian, that have little to do with the Manager software.
@lubos used Office equipment only as an example. You should record all expenses in the account that matches your particular chart of accounts and any descriptions you use for it. These accounts may be influenced by local laws, especially tax reporting laws. These specific assets might also be considered fixed assets, since they are long-lasting. In that case, only the current accounting period’s depreciation will be recorded as an expense. Their full cost would be recovered over time.
The various transaction entry screens in Manager include the accounts that might be used. The presence of a particular account in any dropdown list does not mean that account is appropriate in all cases.
Expenses and equity accounts are never interchangeable options. Equity represents the net investment remaining in the company. It could be owner’s equity, if you are a sole trader or proprietor. It could be partners’ capital. It could be shareholders’ equity and retained earnings. If you need a refresher on basic accounting principles, I recommend starting at http://www.accountingcoach.com/accounting-equation/explanation. This excellent web site is free and covers most of what a small business needs, with excellent examples.
In the example you gave, the LCD and software were both purchased with partners’ personal funds, so the actual purchase transaction should be recorded via an expense claim. Because you have partners’ capital accounts, Manager shows the partners as allowed expense claim payers. Anything recorded as being purchased by one of the partners will go automatically to that partner’s capital account. It is equivalent to contributing capital (money) to a bank account and then buying the items from the bank account by spending money.
The remaining question is how to categorize the purchases. If the items are of small enough value and short enough economic life, they are usually thought of as current operating expenses and allocated to an expense account. But if their value is large enough or their life is long, they might be fixed assets. Read about how to handle fixed assets in the Guides. In such a case, the purchase is recorded to the Fixed assets account. Periodic depreciation entries are allocated to a current expense account for depreciation, reducing the book value of the assets. As I said before, many factors can influence the decision as to whether you handle something as a current expense or fixed asset. For example, sometimes the initial expenses of getting a business up and running must be capitalized, even if they would normally be considered current expenses. If in doubt, consult a qualified accountant who can advise you on local requirements. The small expense will be worth it if it prevents trouble during an audit.