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+--- Thread: very very basic Question from a non accountant (/showthread.php?tid=2104)
very very basic Question from a non accountant - Pike - 06-09-2005
Hi, I hope its ok to ask such a noddy Question here? please dont flame me )
I have just started my own limited company (nothing big, just consultancy with 1 customer ATM). I need to get started on my account.
The question How do I deal with things I bought with my own cash the weeks before I had a biz bank account - I am assuming basic cash book BTW. I bought a desk for 300 with my cash - where do I put that? do i make a payment to me with a cheque for 300 and put what in the payments column? do i make up an expenses form instead?
any help much appreciated - can swap for software help )
- Pracs - 06-09-2005
Any thing that comes in through your personal sources, as in a partnership should go to your / Owner's Capital account, so I reckon it should go as
Dr. Furniture £500
Cr. Owner's capital account £500
This will actually be part of the Equity,
If I understand correctly, you have a limited company in which case you may already have a share capital in. So an option would be to Credit yourself on a current account, and perhaps nil that out since you now have a biz account
Dr. Furniture £500
Cr. Owner's current account £500
Dr. Owner's current account £500
Cr. Biz Bank account £500.
(In this case you will be writing out a personal cheque to yourself and drawing out the £500 back to you)
I am not sure if this will have any tax implications, as long as you keep the VAT receipts to you purcahse of the desk.
Since you may have registered with a minimum capital (through a bank balance for biz purposes) you may have already done a double entry for the inclusion of the capital as
Dr. Biz Bank account £ 5,000 (say)
Cr. Share Capital £ 5,000
- Azeem Shah Khan - 06-17-2005
Hope Pracs's explanation will suffice. I would like to add something on the VAT side
If you are VAT registered, you can also claim any input VAT suffered on all purchases/expenses.
Please make sure that you keep copies of supplier invoices incase you are planning to opt for voluntary VAT registration. You can go back upto 6 months prior to VAT registration to claim any input tax suffered.
You can get further information on VAT from
www.hmrc.gov.uk
Considering you are a consultant, I would also advise you to read IR35 rules as well.
Kind regards
"You don't get to choose how you're going to die. Or when. You can only decide how you're going to live. Now."
- sajjad_dar2000 - 06-23-2005
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Pike</i>
<br />Hi, I hope its ok to ask such a noddy Question here? please dont flame me )
I have just started my own limited company (nothing big, just consultancy with 1 customer ATM). I need to get started on my account.
The question How do I deal with things I bought with my own cash the weeks before I had a biz bank account - I am assuming basic cash book BTW. I bought a desk for 300 with my cash - where do I put that? do i make a payment to me with a cheque for 300 and put what in the payments column? do i make up an expenses form instead?
any help much appreciated - can swap for software help )
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
i give you better advice in 5 words.........
.......
.......
.......
employee me as ur accountant.
- Azeem Shah Khan - 06-25-2005
I will be surprised if he will...
"You don't get to choose how you're going to die. Or when. You can only decide how you're going to live. Now."
- zee_cma - 07-18-2005
i hope u r satisfied, if not yet.... let me tell u detailssssssssssss
Smile ! GOD loved you.....