I am start to working for non-vat registered ltd company last week. I am using Sage line 50. I need some help please.
1- Sometimes they using the personal account for paying the suppliers. Also they use personal account when they get money from their customer too. How can I post these payment to system and allocate them?
2- They rented part of their office to others. So there is a 2 different company in one office and they share some of their expenses such as telephone,gas bill etc.. Bills comes to XXX company's name which is i am working for and sometimes XXX company paying full amount and take half amount from other company and sometimes other company paying the full amount and XXX company pay half amount to the other company. But main problem is bills comes to XXX company name. How can i solve this problem and put on the system??
You will have to set up a Directors Loan Account in the balance sheet and do journals to account for the entries:
If the Director pays a supplier do a supplier payment as normal to clear the invoice off the ledger. Then in the bank do a bank receipt coded to the DLA (usually code 2300) - the VAT tax code is T9. In the bank reconciliation the 2 entries will contra out
Do the reverse if the Director keeps money from a sales invoice - a customer receipt via the bank, and a bank payment to code 2300
With respect to the split bills, which ever company pays the bill should be raising an invoice to the other company. It is then paid or received in the usual manner
Thanks you for your quick reply.. Now I am clear with 1st question. About my second question I am a bit confused because bills comes to XXX company's name. So if I understand correctly I don't have to put these bills to the system. Already other company keeps the invoices because they paid it but bills are not on their name. Anyway, I have to request an invoice from them and i put these invoices to my system as a expenses with nominal code. Am I right?? (and i think i also can request receipt from them because XXX company paid them on the first day by cash)
