I incurred some expenditure via my personal accounts prior to setting my app development company before eventually setting up business account and depositing £3,500.
I have kept all my bank statements for my LTD in order to perform bank recs once I eventually finish the bookkeeping, however, I am just wondering about how to deal with any spending which didn't go through the business account.
I'm guessing I could Dr Expenditure and Cr Capital or Loan Account?
And will spending ad hoc from my personal accounts mess up any bank recs? Just not sure how one would reconcile personal bank accounts when there are only a handful of transactions?
Hi Jay
This question needs to be considered with your other post given the dormant status of your company during the period in which you incurred these expenses for the business, but paid for via your personal account. See my response to your other post.
I think it is best for that question to be cleared up before you progress this issue.
To answer this one more specifically, in due course, what software are you using?
You do not need to include your personal bank account, just process the transactions. Btw - there is no capital account with a limited company.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
If you are using a software package, you can create a dummy bank account called "bank of director" and use that to make payments to the expense codes. Then you can just do a monthly journal to your directors account for the capital you've introduced. I would do it monthly instead of annually, because it shows a more accurate balance of your directors account throughout the year - and you can use it to make sure you've not gone £10k overdrawn in any month, leaving you open to a P11d benefit in kind on beneficial loan
