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I recently started an LLC. The LLC does not have a credit card of its own yet, and I've had to use my personal card to make purchases which I paid through personal funds. (Yes, I know I shouldn't do it that way)
What is the correct way to account for this in my business ledger? Would I debit an expense, somehow add equity from my personal payment as cash(?), and then credit the expense?
If you used your personal card, then the LLC owes you some money. To take this into account in your own personal accounting:
Debit: Accounts Receivable (LLC stuff paid with personal funds), XXX EUR
Credit: Credit Card, XXX EUR
And in your LLC accounting:
Debit: Office Equipment
Credit: Accounts Payable (paid with personal funds), XXX EUR
Don't use the existing account augmented with (paid with personal funds). It's not proper way to do it, as the (paid with personal funds) is not a property of the equipment; it's a property of who you owe and how much.
