If she used the business account for personal use you would have to enter those transactions against Shareholder's loan

Could I get an example of a transaction like this?

There have been way too many transactions without receipts and invoices, plus I don't want to flood my books with useless information... Is there any way around this at all?

I really need an answer cause my boss doesn't like watching me sit around.... please help

so the boss is using a business debit card to purchase things
use 'pay expenses' to record these, my example is a fuel purchase
if some purchases are personal, use the shareholder loan account (3xxx) account

all debit card transactions need to be recorded, as business or s/h expenses

But this would fill the books with useless personal purchases, but I understand I have to record everything. Could i take all the personal purchases on each debit card and add them as a lump sum to each debit card in a couple transactions?

That way, they are there, but when i look through my reports and such, there isn't any personal transactions. Will this work?

Unfortunately you do need to enter each debit card purchase in order to be able to reconcile the bank stmt. Perhaps you need to talk to your boss to explain that the each business bank stmt transactions has to be recorded in the books even if the purchases are of a personal nature and debited to shareholder loan. A better option for your box would be to do a draw from business to personal account and use only the personal debit card for personal transactions.

You can't really, but you can enter all owner transactions to a receivable account that is due from the owner. Then when you post the payment you post the company portion and the owner's portion would be posted to a shareholder account.

Okay, I understand. I just don't really get how we can figure out what can be claimable if i'm inputting business and personal transactions together... I thought that was the point of accounting... Sorry I'm so lost.

When you are inputting the business transactions from the business debit card you are crediting the bank account and debiting 5000 acct nbr business expense such as Office Supplies or Vehicle-Gas or Shop Supplies etc.

When you are inputting the personal transactions from the business debit card you are crediting the bank account and debiting a 2000 or 3000 acct nbr called Shareholder's Loan.

Therefore the business expenses are reflected in the company's income stmt but not the personal expenses.

The personal expenses are reflected in the balance sheet where the shareholder loan account is located and will show how much money they have personally put into the company (deposited personal cash/chq into company bank acct) or have personally withdrawn from the company (used business debit card to buy personal items).

If the balance of the shareholder loan account is a debit balance then that means the shareholder took too much money out of the business bank account and therefore will have to pay payroll taxes on that amount - this is not a position you want the shareholder to be in.

If the balance of the shareholder loan account is a credit balance then that is ok - it means the owner/shareholder has paid the company more money than they have withdrawn from the company.

OKAY! I think it finally clicked! I was always going to use an expense account, because school taught me that, but we never dealt with personal transactions... Thank you so much for answering this question.