book keeping question

[paul1966]

started my sole trader business about a month ago, just recently invoiced my first client so as it stands the business has no funds, i have already purchased stationary ect. for the business so how do i enter this into the accounts, can i just wait for the first cheque then take the amount off that or do i have to enter the receipts now and have a -ve ballance sheet? also i purchased a domain name for the business before the business was officially formed can a claim for that?

[elainec100@cheapaccounting]

Record the items you have paid for as expenses (debit P&L) paid by capital introduced (credit Balance Sheet)

[paul1966]

Record the items you have paid for as expenses (debit P&L) paid by capital introduced (credit Balance Sheet)

not sure i understand that elaine, i am using vt cash book so i can enter the expenses as a payment but do i enter the amounts i have paid so making the total negative? until my payment is received.

[elainec100@cheapaccounting]

Have you got a directors account set up?

Then you would enter is as a payment against this account (like another bank account).

Then when you have the funds available and you reimburse then enter a payment on the bank account against the directors account.

I don't use VT - so others may be able to help more.

[kjmcculloch]

Paul,

First go into Payments and Receipts.

On the first line make a receipt, put in the date and as details "Capital Introduced", then the amount of your purchase. In the Analysis Ledger column choose 'Capital Account' and in the Analysis account choose 'capital introduced'.

On the next row choose payment and enter the date and details of your purchase, and the amount. In the Analysis Ledger column choose 'Expenses' and in the Analysis account choose 'Stationery and Printing'.

Then just close and save.

That's you.

Kris

[Homshaw]

The advice given by kjmcculloch is spot on.

If you need any help with VT please feel free to pm me. I would be only too happy to help.