Transaction between Company and Personal -Saving account

Nilay_ShahNilay_Shah Member Posts: 10

I had requested an amount XX to buy an asset on behalf of the company where I provide consulting services. So the the company transferred the agreed funds to my savings account, but later decision was made that the purchase had to be done by the company itself and thus I returned the funds transferred to savings account. Kinldy advise how do i record this transaction. Thank You!

Comments

  • MikegMikeg Member Posts: 523 ✭✭✭

    How did you originally record the cash received? I would reverse that. The cash received should have either come in as a loan (debit cash credit loan payable), equity (debit cash credit owner equity) or as a grant (gift) by debiting cash credit income. Just reverse how you recorded it the first time.
    Mike G, CPA

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