How to pay back to the owner who paid for purchases on behalf of business

There are a few steps to record the pay back to the company’s owner who did some payment on behalf of the company. First, we'll have to create a Current Liability account to track the amount owing to the business owner for incurring expenses on its behalf

1. Select the Gear icon, then Chart of accounts and New.
2. From the Account Type dropdown, select Current liabilities.
3. From the Detail Type dropdown, select Other current liabilities.
4. In the Name field, type any name which is applicable ie. Payable to Owner.
5. Select Save & Close.

Select + New. Select Expense.

Enter the purchase made. Next, enter the Payable to Owner account with the total purchase amount entered with a negative figure. Done correctly, the amount at the top right should read $0 as no cash has left the business at this point. Select Save & close.

Select + New. Select Transfer.

1. From the Transfer Funds From dropdown, select the name of the bank account used to pay the owner.
2. From the Transfer Funds To dropdown, select the account Payable to Owner.
3. From the Currency dropdown, if required, change the currency in which it was paid.
4. In the Transfer Amount field, enter the amount reimbursed.
5. Select Save & close.