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Post Info TOPIC: how to entry director's personal spend into sage 50?
Crina251075


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how to entry director's personal spend into sage 50?
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Hello fellows. 

 

My today's question is how to entry director's personal spend which was paid by company current account into sage 50? 

 

Because in the end of the year, director will receive dividend, will these personal spend be counted into the dividend?

 

When director drew dividend monthly before the end of the year, how will this be entered into account?



-- Edited by Crina251075 on Tuesday 8th of January 2013 05:30:55 PM

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Shamus


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Don't use Sage but the principle is the same regardless of the software used in that any monies not paid to the director as salary, dividends or reimbursement of expenses during the year go to the Diretors Loan Account and at the year end this is cleared down by use of a dividend.

From your note it sounds as though you are pretty much on top of the general principle and just needed confirmation that you were on the right path.

kind regards,

Shaun.

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Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Crina251075


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Thanks for your advice, Shuan.smile Actually, I am a new user of Sage, so I want to be sure every account I use is correct from start with. 

 

By the way, why did you say don't use Sage?

 

Regards,



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MarkS


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Re your questiond

Dr Director Loan X

Cr Bank                         X

 

Dividend will be credited against directors loan so will be offset against personal spend

 

Dr Dividend      X

Cr Bank                          X

 

Regards

Mark



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Mark Stewart CA

http://stewartaccounting.co.uk/

Providing accounting, bookkeeping, payroll and tax services to small and medium sized businesses across Central Scotland and beyond.
Shamus


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Hi Crina,

sorry, I was saying that I don't use Sage rather than telling you not to. Just reread my answer and can see how you misread it. Sorry about that.


Mark,

I think that you made a slight error on the second entry, shouldn't that be Dr Dividend, Cr Directors Loan?

Sorry, not trying to be a clever bugger and god knows I've made enough typo's myself.


kind regards,

Shaun.

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Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
MarkS


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Shamus wrote:

Mark,

I think that you made a slight error on the second entry, shouldn't that be Dr Dividend, Cr Directors Loan?

Sorry, not trying to be a clever bugger and god knows I've made enough typo's myself.


kind regards,

Shaun.

 Hi Shaun

Dont think so.  There were 3 questions, 1st and 3rd did journal to show the entry and 2nd replied with a sentence.  Assumed the money being lifted in the 3rd question rather than just adjusted to loan account.  Of course if just a bookkeeping entry would be

Dr Div

Cr D/L

But question can be read either way.

Regards

Mark



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Mark Stewart CA

http://stewartaccounting.co.uk/

Providing accounting, bookkeeping, payroll and tax services to small and medium sized businesses across Central Scotland and beyond.
Shamus


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Think that we just read it in different ways.

Thought that it was unlike you to make a typo.

All the best,

Shaun.

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Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
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