Hello and welcome to Just Answer. I have experienced this issue first hand and this is how it was handled at my company. First of all just to clarify... In your situation the boss/owner is asking is agreeing that the expenses are personal. Is the boss/owner specifically asking you to pay the entire bill out of the company bank account? If so then you have a couple of options. Yes, you can debit the Owners Equity, you can also have the owner write a personal check back to the company to cover the personal expenses.
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Yes, my boss agrees that some expenses are personal, she is not trying to pass them off as business. We have both a debit card and a credit card to work with, and in the case of the credit card, she pays some of it out of pocket, and some of it she transfers from the company checking account. This way, it's easier for me because I debit all her personal expenses to owner's equity, and then when she pays in, i can credit the whole amount to owner's equity. Does this sound appropriate?
Yes, this sounds perfectly acceptable.
Where did you originally apply the charges to a specific account?
You should have a drop down that states "other charges" in the item list under the list menu. This is where I would list it as it does not relate to an actual business expense. I am meeting with a colleague of mine tomorrow evening and will attempt to confirm the information and obtain additional details for you.