Hi guys, just a quick question as I know you'll all be kind enough to answer. I do the books for my neighbour who has just a small business and isn't registered for VAT (most is zero as it's all food related anyway).
Lately he's bought a few things using a different credit/debit card that doesn't show up on his business bank statement because it's a personal card. I have put these through the cash account rather than the bank column and then written this on the invoice itself. What would in fact be the correct way to record this? Bearing in mind, I don't bother with software for him just have really basic accounts in excel.
I use software - but I also deal with these type of transactions in the same way as you've done - i.e. put them through the 'cash' account. I usually add a note to it as to which card was used, if I know this, so that if future inspection requested, the client would know which card statement to look for.
Carol
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Carol Saunders Lady of Ledger Book Keeping Telford, Shropshire
thanks so much for your replies, being as there's only a couple and I've told him that they wont go through the bank statement, he said that he's used that card in error but will try to remember not to, so I won't bother with a separate column at this moment in time, just done what you said and put it through the cash column, written it down on the invoice and a note on the books that it was a different card. That should suffice I think.
