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In-kind contributions instead of owner Equity

Farmer_FrankFarmer_Frank Member Posts: 13

My partner gave me a truck for my personal use in exchange for the remaining amount of money owed to start the business. We agreed to both put in the same amount and the truck to me was part of the deal. How do I categorize that within Wave. The one side is his owner equity account but the other side is not income, nor is it a withdrawal. So how to I categorize it so it does not throw off our profit and loss statement?

in Accounting Technical Support

Comments

  • BarsinBarsin Member, Moderator Posts: 2,041 ✭✭✭

    Hey @Farmer_Frank

    Hmm this is a difficult question that I believe only an accountant could answer. Typically they have what's called a Schedule C. This is an official document that tells you the truck's worth and how it depreciates over time. Sadly I don't know that we would have this kind of access to that information. But I do however believe it will need to be treated as a custom equity account regardless.

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