We all know clients can claim various items to offset their tax dues at the end of the year, we also know where all these go in the grand scheme of things. But if your proportioning costs ie phone/internet etc; how on earth do these translate into a system such as QuickBooks?
Say combined internet/phone etc cost £150 for the year... they obviously get added to the Dr side of the expense account, but where does the other side go if these were paid NOT using the business account? CR Capital??? Can anyone confirm or deny this for me... :/ please?
IIf its a sole trade, then the other side is a credit to their capital account/capital introduced. If its a ltd co, then its a credit to their director's loan account. (or put it through as a supplier purchase invoice, if the director has been set up as a supplier)
