if a ltd company uses 2 banks, one a business bank and 1 a personal bank, then they use their own funds to purchase a live animal then they pay part of the money back to themself from the business a/c to personal.
Is this the correct treatment.
1 purchase of live stock with personal bank a/c , dr vat and asset a/c then cr capital ac
2 the owner pays some of the amount back to himself, so then I dr capital ac and credit busines bank ac.
please correct me if im wrong but this is the only way I can think of putting the transcations through
Hi Lor To the best of my knowledge, and I stand to be corrected if I am wrong, you are correct with posting 1, but I am not sure that he should have drawn the money from his business bank to repay his personal bank account even if it was for a genuine business purchase because there may be an issue with dividends. Why didn't he use the business account to make the purchase. I look forward to seeing if anyone else can give some more advice Regards Mark
