I'm helping a friend to set up a small business from scratch. I have some knowledge of sage 50. His initial capital is £20,000 which I will input via the journal, CR Capital and DR Bank Account. He has various items for resale which he wants to enter also as intial captial/director's loan to the value of approximately £12,000 (the exact value is still being calculated). How do we enter this in sage 50. Is it also through the journal as CR capital but debit what?. I assume they are not opening balances as they do not come from a previous year's business. New products have been purchased and records have been created for all items to be sold, and these existing items need to be added to each record card under a variety of nominal codes. I'm afraid of getting the entries wrong particularly as he wants the value of this stock to be part of his initial set up capital.
Both the £20,000 and the value of the items to be sold are a loan from him to start up his limited company. Thank you for responding Kris, like the kitty.
