SCORP1
Level 1

Sorry let me clarify my questions. There is a no payroll. Company owner is a Shareholder. The shareholder bills hours and travel costs for services delivered. However, the Shareholder wants all the service income to stay in the business. Shareholder does not want anything paid to him personally. Wants all the income to stay in the business bank account. 

I know I need to debit travel expense and consulting expense accounts but what do I credit? If I credit a Liability account, then the liability is never going to get cleaned out because Shareholder again does not want any cash payment to himself. So should it be credit to Retained earnings and will that not duplicate revenues?

 

0 Cheers