The director has purchased a company van using his own cash. How do I record firstly the directors loan and then the purchase of the van.
Im quite new to Sage and Im unsure of the correct procedure. If I enter it as a bank receipt will it show up on the bank and then stop me from being able to reconcile against the bank statement as it didnt go into the company bank account it was paid directly to the company that the van was bought from.
We usually ask newbies to do a little intro about themselves - helps us both get to know you and to pitch answers at the right level. So a wee bit about - where you work, how long for, what prof body you are with, if you are studying/what/with whom or if fully qualified - what/with whom? Where based/do you have clients of your own or just work for this client/years in the industry. That sort of thing.
Also, generally with software based questions we will ask for more information - such as which type of sage and then which version (year) as sometimes the answers need to be very specific to the version of the software you are using.
We may on occasional also need to know if the customer/client/company you work for is registered for VAT and if so on what scheme. That one might be of particular use on this occasion as there a couple of ways of doing this and I dont want to miss the VAT angle out, although you would also need to clarify if VAT is reclaimable on this item (if indeed they are VAT registered).
One other question - does the director pay for a lot of items personally that are for the business use?
Will make the suggestions based on your answers and you can then decide which to opt for.
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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
