Help, assistance with double booking entry

Hello all! I have what is probably a silly question but here I go. I am
having an issue with getting my credit debits proper and recording the
proper transactions.

1) Home owner pays me for material.
2) I pay supply company when that check clears

Tried making a sales order, purchase order, I was up until 4:00 in the morning trying to
figure it out playing with journal entries, could not get the proper
debits and credits in my chart of accounts. The total was correct, but
my bank account would keep reading that it had the $$ from the home
owner paying me. Even after I would try to double book it with a debit
from accounts payable. Lost. If someone sees this and could point me in
the right direction I would be very thankful.

Please check if this works.

Create a liability account (or use existing one) for Owner.

When receive money from Owner, make Journal Entry of:

Cr. Owner account … XXX
Dr. Bank account … XXX

When you pay to your supplier (on clearance on cheque), make Journal Entry as following.

Dr. Owner account … XXX
Cr. Bank account… XXX

In this scenario, you need to track transaction with the Supplier or book expense, because it’s not you but your owner who paid for the expense.

1 Like


Thank you very much for the response. Thank you as well for pointing out the Cr, Dr, for me as well. I ended up making an expense claim, but I never made the bank entry, and went in and created the journal entry separate. My issue was that it wasn’t a direct transfer, I made a slight profit on the material, unintentionally with added cost to cover processing fee.

Order of transactions.

  1. Sales order for home owner; material cost
  2. journal entry to represent such claim
    -Income > Direct Income > Sales
    Which was a Debit into
    -Current Assets > Accounts Receivable > Debtors

3)Expense claim to represent cost of manufacturer; material cost
4) journal entry to represent such claim
-Expenses > Indirect Expenses > Material
which was a credit from
-Current Assets > Accounts Receivable > Debtors

That seemed to have done the trick and looks to balance out how I think it should with my bank account and profits. My question now is should I go back through and for #2 delete that entry and actually make the entry through the expense claim so that it is all linked together now that I know which accounts to place it in? Or will reporting make no difference? I have been trying to utilize the tagging system as much as possible, I think it’s brilliant with the systems in place.

Thank you again Umair.


Chichester, J