Quickbooks income question

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amother

Tue, Aug 27 2019, 3:27 pm

Someone wired money money to my brother for money I owed him. That person, however, was paying me for services I want to record as income for 2019. Therefore, how can I enter that as income for 2019? And how can I count the expense that was paid to my brother as a travel expense? Thanks

amother

Ruby

Tue, Aug 27 2019, 3:36 pm

You need to enter a bill for the services you rendered to client.
Then you need 2 journal entries.

1)
-Debit a/r for amount paid by client. Select clients name
-Credit a new account you'll call loan/exchange and enter a name for your brother.

2)
Debit l/e account for your brother;
Credit travel expense.

You can then apply the credit to the open client balance.

If anyone knows of a better way feel free to chime in.
Edited to add:
I mixed up the debits and credits. Sad

Last edited by amother on Tue, Aug 27 2019, 5:41 pm; edited 1 time in total

amother

Honeydew

Tue, Aug 27 2019, 4:06 pm

If she does as above, she will have created travel income.

without quickbooks

Dr. Cash 100
Cr. Income 100

Dr. Travel Expense 100
Cr. Cash 100

With quickbooks?

I create the client invoice. the show the invoice as being paid. Then show the payment as a deposit in the regular account I use (which isn't actually true)

Then do a withdrawal (I used the checkbook without check number) and make a payment to my brother coded to 'travel expenses' for the same amount as was received.

The bank will balance because its an 'in and out'. You can make a note somewhere of what the actual transaction was.

This assumes the money you owe your brother is a travel expense for your business, and that you have not yet booked the loan between you and your brother, nor the travel expense.

amother

Chocolate

Tue, Aug 27 2019, 4:20 pm

If I understood correctly, you need a certain amount recorded as income and an equal amount recorded as a travel expense?
That would balance

Debit travel expense
Credit service income
It would be an increase to both.

You could technically make one entry and write an explanation on the memo line.

Effectively, I would record the income under accounts receivable. In the a/r account, an increase to a/r using the service income account.
Dr a/r
Cr income

Then I would show payment to a/r using travel expense account. You can also use a temporary account "loan to brother" and make a third entry paying the loan with the travel expense.

Dr expense
Cr a/r

Or

Dr loan
Cr a/r
Dr expense
Cr loan

(I used QuickBooks but not the invoicing. I make entries directly to the accounts)

amother

Wed, Aug 28 2019, 3:25 am

Thank you!

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