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Post Info TOPIC: Simple question about cash account PLEASE HELP !!!
PawelLTD


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Simple question about cash account PLEASE HELP !!!
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Hello All,

I wonder how cash account working.
I have following entries:
1) buy a stock 500.00 GBP
2) pay a rent 1000.00 GBP
3) pay wages 1200.00 GBP

So finally I have 2700.00 negative balance on cash account.

Can I top up cash account in some way ? For example easy transfer from bank account to cash account.
Bank account (Ct) 3000.00 GBP
Cash account (Dt) 3000.00 GBP

Then finally I will have 300.00 GBP positive balance. 

How above should look like if it was director's individual bank account rather than company's bank account ?

THANKS IN ADVANCE !!!



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kjmcculloch83


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I think this is what you're looking for. If it's a sole trader CR capital DR cash and if it's a limited company CR directors loan account DR cash.

Hope this helps.

Kris

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PawelLTD


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Thanks Kris,
As I know I can enter 3000.00 on directors loan account without any interests.
Am I right ?

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Andy_L75


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Yes thats right. If you pay money into your business bank from private bank you credit the directors loan, and you can either leave it there or take it back out when your cashflow improves.

There will be no interest as your directors loan will be in credit

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