Based on your facts:
- It's not clear if the auto-payments were for personal items or business; you just indicate non-expense.
- If the auto-payments were for personal items:
- You would need to debit cash for the $1,240 and credit capital
If the payments were not personal, then please provide some additional details.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
