Thread: Funding a register for restaurant?

I'm opening a restaurant/nightclub. My question is... in accounting how would i properly allocate taking my own money to fund registers? Then... because i'm not fully open depositing starting register cash into a business account for next week. I need to know how to do this on paper. (actually i run quickbooks 2008)

treat it as a capital contribution to the company.

Debit: Cash
Credit: Additional Paid In Capital

Mike, I am the worst ledger accountant allowed into guild and onto grid.


If business (entity theory application) "borrows" cash from owner, season0816, transaction is a loan
from season to business?

short term obligation
cash

For tax purposes, a transaction loan from an owner of SP/LLC/LP/LLP/LLLP constitutes a loan from external party acting
in individual capacity (if individual) unless the intention of the parties is to increase investment (Credit: Paid in Capital vs. Loan). Season
describes an intraday promissory obligation (loan), or trickier yet, a gratuitous bailment of money*.

Theoretics, since lender maintains possession and control over cash register, it is not a loan, rather, a gratuitous use of property avoiding
"transaction" classification (similar to estimates). Reasoning: a "transaction" fails the test of contract if participant's obligation is nul. Test; Apply
foregoing to gift to Corporation or found property.

* Bailment in CA of cash is not recognized as valid banking technique.

Consider the deposit as a Capital Contribution to the business.