I started business in April 2011, bought a van for cash for £4500, not out of business profits but a share of each business partner. I have put that into the cash account as an expense, so out of all the jobs we've done where we received cash, for a while the cash account is in the red. Is this the right way to do it so it doesn't show we earnt that cash?
Not sure if you are still looking for a reply ... Presumably you are using KashFlow so the way to deal with this is to raise a new receipt in purchases. When it asks you which account to assign it to put it to "Plant & Machinery". Then for the payment put it for your cash account. That may well be what you have done and if so it is the right way
technically it is better if you make the money white as far as your business profit and share of each business partner is concerned. in this way, you will not be liable if the account continue to stay in red and you can easily give prove to your share holders that their money is always well invested.