Hi, I am doing the bookkeeping for a limited company on VT. There are a lot of drawings going through the bank account, last year I did it all on excel and all the drawings came under drawings on the spreadsheet and sent to the accountant. This year I am running out of time and set it all up on VT (100 times quicker already!) and at first I was just going to set up a bank account as a drawings account and use that for all the personal 'things' coming in and out of the business bank account and then leave it to the accountant to put it in the right place BUT where should I actually be posting the personal items??? is it 'Share Capital' and can I post both the personal income and personal expenses to this account?
It's been so long since I've studies this I can't get my head around it, I've had a look in my text books and think this is the only place it can go?
Drawings are a self employed concept. Directors are employee's of the company. The money in the company does not (directly) belong to them it belongs to the company that they work for.
Assuming that this is not an IR35 case then put the money withdrawn from the business to the DLA and clear at the period end using a dividend.
Do not allow an overdrawn DLA to go over the period end.
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.
No, the DLA is a Creditor account (which may have a debit or credit balance).
In VT you will find it as Creditors:Director's Account
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.
