My client has just started a new business venture hence his business current account has a 'zero' balance. Therefore he has used money from his own personal account to purchase cash items as well as capital items until he has money in his business bank account to pay for future purchases.
Would anyone offer me any advice as to how to post these items using Sage? These will be the first postings into his accounts.
Hi The expenditure is obviously an expense to the business hiowever as the acocunt balance is 0, the personal money used will be classed as capital introduced, hence it will be a liability as the money in the capuital introduced will be the owners money ans will be owed back by the biusiness.
Does that answer your question? credit capital introduced and debit the expense, and then when the funds are repid you will credit bank and debit capital introduced which will clear the balance
