how to book capital raising proceeds
I am using Moneydance to support the accounting for a small business.
The business raised $25,000 in capital. I deposited it into a saving account.
In the savings account, I entered a transaction:
- Description: Deposit - Category: Proceeds of fund raising -
Deposit amount: 25,000.
In the income statement, this deposit shows as income.
I want it to be part of the Net Worth?
How is that accomplished?
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2 Posted by -Kevin N. on 18 Jan, 2012 03:58 PM
Hi Roy,
I'm not quite sure what you mean by 'Income Statement'.
Try removing the deposit txn and instead, make the $25,000 the 'Initial Balance'. To do so, while viewing the account in question, from the menu bar, click on Account, then Edit Account. In the resulting form, you can enter the 'Initial Balance'.
HTH -Kevin N.
3 Posted by jbnyt on 18 Jan, 2012 06:29 PM
Wouldn't it be part of your net worth as a deposit since all monies in the savings acct show up in net worth? Are you looking to be able to see this amount show up as a separate item in the net worth report? If so, then you would probably need to set it up as it's own acct (i.e. new bank acct called Raised Capital).
Support Staff 4 Posted by Angie Rauscher on 18 Jan, 2012 11:29 PM
Roy,
The value of the Savings Account will be included in your Net Worth Calculation. Is this not happening? A screenshot of the problem would be especially helpful.
Angie Rauscher
Moneydance Support
Angie Rauscher closed this discussion on 18 Jan, 2012 11:29 PM.
roy.lowrance re-opened this discussion on 18 Jan, 2012 11:57 PM
5 Posted by roy.lowrance on 18 Jan, 2012 11:57 PM
I setup a liability account "Contributed Capital" to hold the other side of
such transactions. That seems to work even if there are multiple such
transactions.
Can someone close the ticket?
- Roy
Ben Spencer closed this discussion on 20 Jan, 2012 12:33 AM.