I am helping a friend with her Purchase Ledger and she wants all the petrol and other receipts her partner in the business entering on the purchase ledger.
My questions is as he paid in cash for all these things if i input them on the ledger i can't clear them off the bank as they dont appear on the statement what do i need to do?
I'm quite new at this so sorry if i sound thick and stupid :)
Are they allowable? What is your double entry if you put them through? Either way. Why does she want it doing that way, you should ask. Wasting time by entering stuff in long winded way that is open to more errors. Dont do accounts for friends if you dont know what you are doing. Nor anyone paying
I don't think there will be any problems regarding the cash withdrawal from the bank book in this case. Your financial advisor will be able to confirm this. These operations rarely communicate with each other. The main thing is that the balances of active and passive accounts of the active book eventually converge. Keep an eye on it. I advise you to use the create a paycheck stub software service. It will allow you to automatically make receipts and payment receipts without wasting extra time on manual filling. I have been using this technology for several months now. Be able to value your time.
-- Edited by xasqwer on Thursday 27th of January 2022 05:42:08 PM
I don't think there will be any problems regarding the cash withdrawal from the bank book in this case. Your financial advisor will be able to confirm this. These operations rarely communicate with each other. The main thing is that the balances of active and passive accounts of the active book eventually converge. Keep an eye on it. I advise you to use the create a paycheck stub software service. It will allow you to automatically make receipts and payment receipts without wasting extra time on manual filling. I have been using this technology for several months now. Be able to value your time.
Ignoring the not so subtle advertising for a moment, I don't see the point in this software at all.
All you do is put all withdrawals or non banked receipts to petty cash and process the payments against that. This seems to me to be a solution that doesn't have a problem to solve.
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.
Sorry Doug, read your reply after the advertising. Yep, we're singing from the same hyme sheet.
__________________
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.
Sound like he dose not do his own books him self every month and put the recited though him self. He has the accountant do it for him ever year
I do recall people being paid on a millage allowance. So if this can be done in some why then what about his millage from his MOT certificates?
The posters client cannot claim mileage allowance. Change of method of claiming for travel expenditure is only available on change of vehicle and where mileage is claimed it needed to be supported by a mileage log detailing every journey where one's own vehicle was used for business purposes.
Not trying to be at all nasty or condescending towards you but I have to ask you here to please refrain from attempting to give advice. People come here expecting the posters to be financial professionals (qualified/part qualified accountants and bookkeepers) and as such a certain amount of trust is afforded posted responses. Those receiving the advice are generally similarly qualified professionals who may have a small gap in their knowledgebase which others here are always happy to help with. No matter how well intentioned the advice of a casual visitors to the site, if they are not a financial professional then it is at best just guessing but because of the platform that it is posted on it is more likely to be read by someone as legitimate advice.
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.
I am not an accountant, so double-check the info, but I don't think there should be any issues with the cash withdrawal from the bank book. Therefore, these transactions do not appear together often. The main thing to pay attention to is the balances of active and passive accounts of the active book to converge eventually. You could also try using a paycheck service such as https://www.thepaystubs.com/. You can instantly make receipts and payments receipts using and not have this issue ever again.
First, can you please confirm that we are dealing with a partnership.
Second, can you please confirm what accounting software you are using.
When you are in a partnership or a sole trader you should have capital accounts for each partner set up. If you want to go the full hogg then you could set up the following accounts for each partner:-
Balance Brought forward - The opening balance on the partner's capital account at the start of the accounting period
Drawings - The money the partner takes from the partnership each year
Capital Introduced - The money the partner puts into the partnership each year
When the partner is paying the petrol bills he is, in effect, settling the partnership's liability and, therefore, he is introducing capital into the partnership. So, in effect, the transaction would be:-
Dr Petrol Supplier Account
Cr Capital Introduced
How you would put this transaction through depends on the software you are using.
One other point, for the end-of-year tax calculation you will need to split the petrol (as well as repairs, car tax and insurance) between private and business use. I would get your friend's partner to keep a full mileage log for at least three months every year. That will keep HMRC happy if they ever decide to investigate.
