For a bootstrapped small business, which has 4 stockholders, money is lended by them often, to make some cash flow.
I like to capture the incoming money from them, with some receipts so that we can maintain records their investments.
How to do this as a purchase invoice way?
I dont want to do as adhoc payment entry.
The right way to capture this would be to create Capital Account for each Shareholder under Liabilities and then pass a Journal Entry
Capital Account Cr
Bank/Cash A/C Dr
For proof (receipt) you can take a Print of the Journal Entry
This transaction should not be recorded as a Purchase
Thanks for the info @Manan_Shah
It worked well.
I was trying to add the same at “Payment Entry” instead of “Journal Entry”.
Thanks for your neat guidance.
Payment Entry is for Debtor or Creditor only.
Thank you for the tip about creating a Capital Account for each Shareholder under Liabilities and then passing a Journal Entry, it’s a nice one!