Credit card

[Aurelia]

I am wondering if I can locate credit card in the liabilities section under other creditors in the accounts?

 

[Scalloway]

If you are using a credit card to pay for company expenses then the balance due will be a company liability.

 

[Aurelia]

I know that is the company liability, but I am wondering in which category (bank loans and overdrafts; trade creditors; amounts owed to group undertakings; other creditors, corporation tax; other tax and social security) the balance should be shown in the notes in the accounts?

 

[Scalloway]

I would put it under bank loans and overdrafts.

 

[Aurelia]

Many thanks

Other question:
The balance of accounts payable is shown as debit ( because of the credit notes rec'd from supplier are higher than the balance of supplier invoices). Do you think that should make the split and show the credit notes as "Other debtors'' and supplier invoices show as "Trade creditors''?

 

[Scalloway]

I would just show it as a debit balance in liabilities.

 

[Aurelia]

Many thanks.

I found similar case but with trade debtors and they are saying that should be separated;
https://www.accountingweb.co.uk/any-answers/credit-balance-on-debtor-account-in-statutory-accounts

 

[Scalloway]

That refers to an out of date Accounting Standard. There is more information on preparing accounts here.

https://instantcpd.com/userfiles/course_material/5886261e57898-powerpoint.pdf

 

[Aurelia]

Many thanks for the link.

However, I cannot find anything in relation to my problem: If I should split and show credit notes as "Trade debtors" and the rest as " Trade creditors'' or I should net of and show as one under "Trade debtors''.

 

[Scalloway]

The new standards seem to be less prescriptive on how things should be shown. I would show them as you feel best.