Recording a personal deposit to a farm chequing account

Generally, it is best practice to have separate bank accounts for farm funds and personal funds.  An individual may purchase something for the farm (or vice versa) and we need to record this to accurately represent income and taxes.  For sole proprietors and partnerships, the default equity accounts set up on AgExpert Accounting are: ‘3000 Personal Drawings’, and ‘3020 Personal Advances’.  For corporations, you will need to use the account for Shareholder Loans in the liability section.

1. Select Deposit from the Quick Action Menu.                                                                                    
2. Enter the following:
   • Customer – enter the customer the funds are coming from
   • Bank account – select the account for deposit
   • Date – enter the date of the transaction
   • Reference – enter a reference, such as cheque number (optional)                                             
3. Enter the transaction details:
   • Type – select PA Personal Advance
   • Account – select the account you are depositing to
   • Description – enter a description (optional)
   • Total – enter the amount to be deposited                                                                                

Click Review to view the balanced debit and credit entries. Click Save to record the transaction.

The deposit will increase the bank account and the advances equity account. The income statement won’t be affected by this transaction. 

Last updated on May 28, 2020 by FCC AgExpert