Client started his business on the 1st of January. There are a few business receipts such as website hosting, a laptop, business cards that came out of his personal bank mid December. These are all business items but is there a correct way to enter them into Sage? How about if I just date them all 1st January and have them coming from the personal account on Sage? Or is this classed as bad because I'm changing the date?
Assets purchased for the business prior to the business starting are taken as purchased on the first day of trading so everything would be put through as though purchased on the 1st of January.
The source of the funds is no never mind but the value will be capital introduced.
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.
Thanks Shaun, so are you saying I should code them all as capital introduced rather than what they actually are i.e advertising etc?
The expenses would be debited to the relevant nominal code (office equipment, advertising etc) but the other side of the entry would be credited to capital introduced.
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Pearce & Co - Chartered Accountant and Chartered Tax Adviser
no, you still code them as what the entries as what they really are but the balancing side of the double entry will be capital introduced.
You could of course think of it as add up the price of everything purchased and put that through as capital introduced and then record all the purchases as though made from that capital on day one of the business.
Hope that makes sense.
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.
Crossed in the posts Robert but thankfully we were saying the same thing anyway.
kind regards,
Shaun.
__________________
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.
