Please could someone give me some advice with the following:
My client bought a business last July and in the first couple of months of trading was incurring expenses on either her personal bank account or the bank account pertaining to her other business interest. How do I account for those expenses within SAGE?
In the case of her own bank account use you should debit the expense account and credit the Director's Current Account.
In the case of the use of the other business's bank account, I would set up an Intercompany account as a creditor in the nominal ledger and then debit the expense account and credit the Intercompany account. This intercompany account should have an equal and opposite amount showing in the other business's books too.
