Create a clearing account as a bank account. In the clearing account create a transaction that debits the tenant's A/R account the $4,000. You do this by putting the tenants name in the Payee and using Accounts Receivable as the split. Then create another transaction that credits the owner

Sorry didn't mean to hit enter.

Didn't finish the explanation.

In that transaction, put the owner as the payee and Accounts Payable as the split. Then write a third transaction that credits your income account.

This should zero out your clearing account, then receive the payments from the tenant through the "Receive Payments" option. Deposit the payments by going to Banking--->Make Deposits, and select the payments for deposit, then write the checks through Banking--->Write checks

Do you know how to create a new account in QB?

Okay, are you actually in QuickBooks?

I will go step by step, hitting enter after each step.

Okay, here we go......

First, to create the Clearing account, hit Ctrl-A to bring up the Chart of Accounts, and then Ctrl-N to create a new account.

In the next screen, choose "Bank" as the account type, and click "Continue"

In the next screen, put "Clearing Account" in to the account name. No need to worry about filling out any of the other boxes. Click "Save and Close".

Now you should be back at the Chart of Accounts screen. Find the Clearing Account in your list and double-click on it.

This will open a register. For the first entry, put your Tenant'a name in the Payee box, the $4,000 in the "Payment" amount and Accounts Receivable in the "Account" box.

Then hit enter.

In the next transaction, put your Owner's name in the "Payee" box, $3,000 in the "Deposit" amount and Accounts Payable in the "Accounts" box.

Hit enter. now leave the "Payee" box blank, put $1,000 in the "Deposit" amount and your Income account in the "Account box.

Now receive the payment by going to Customer, Receive payment enter the Tenant's name in the "Received From" box and a transaction showing the $4,000 should show in the bottom of the screen. Receive the separate payments against the amount, saving between each posting. Once you post the first payment and save and post the second payment, the balance after the first payment should show.

After you have completed the posting of the payments, go to Banking-->Make Deposits. A payment window should pop showing you the two payments you just made. Select both of the payments by clicking on them and then save the deposit. Make sure it is being deposited in the correct account by looking in the upper left hand corner.

Once you have done this and saved it, go to Vendors-->Pay Bills.

Locate the bill for the Owner and put a check mark next to it selecting it to be paid. Then go to the bottom of the screen and fill out the information about the check (Account and whether you are going to print or assign the check number.

Hold on just a minute I have a call.

Okay, I'm back.

Okay, now click on "Pay Selected Bills". If you are going to print the check, a box will pop showing the bill that was paid and you will need to hit the "Print Checks" button to actually print the check. If you are going to assign the check number, a different screen will pop asking for the check number, just fill it in and hit OK.

So now we have taken care of receiving the recording the A/R, the A/P and the income, received the payments and paid the Owner. Now we pay ourselves. Hit Ctrl-W to bring up the write checks screen, make sure you are writing the check out of the same account you put the money into by looking in the upper left corner. Then put your name in the payee, $1,000 in the amount and in the expense bx below, assign it to owner draw.

Now you have to tell QuickBooks to print the check by checking the "To Be Printed" box, or if you are handwriting it, put the check number on the line of the upper right hand corner of the check image.

If you are printing it, you can either print it now by clicking "Print" above the check, or print it later by clicking on "File-->Print Forms-->Checks.

And that is how we do it :-)

Did you have any questions?

Awesome.

Well, my wife called me to dinner while I was in the middle of this, but I wanted to finish it.

So if there's not anything else you need at the moment, I'll head on over there.

You too!!