My client is a photographer who has customers ordering photos over the internet and paying through Paypal. He also buys items for his business himself using his Paypal account. Obviously these count as sales and purchases, but at the moment he doesn't transfer money in and out of his Paypal account from his business account.
How do I show these items? For example, I assume I put an entry into Sales to show work he has done and sold, but how do I do the double entry? I can't put it through the bank because no monies are going through the bank. Also, if he buys equipment I can put those items in the relevent ledger, but where would the double entry go. Or is the double entry the entry in the Paypal account?
(Any money he has transferred in and out of Paypal has gone via his personal account and not his business account-long story, but I have put him right now!).
You can print or view a list of transactions within Paypal itself for a given Paypal account. You will also see transactions which incur fees to Paypal and are costs to your client's business. An expense account will therefore be needed to record Paypal fees.
