sjrcpa
Level 15
01-09-2021
02:58 PM
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Where personal funds are used to pay business expenses, the owner has either made a loan to the business or has contributed capital to the business. Ask him which.
If personal expenses are paid from business funds (which should not be done), it is a draw/distribution.
I'm not sure if you're asking about one or both.
The more I know the more I don’t know.