- Original Poster
- #1
Hello
I have just started using sage instant for sole trader and i would just like to clarify a few things about the postings. If anyone could answer these questions would be very grateful.
1. If i transfer 20% tax each month out of my business account. I have gone DR Drawings and CR bank acc. Then when jan / july comes and i need to pay the tax is it then CR drawings and DR bank then CR bank and DR tax acc. Not sure what to do at that stage. And is the drawings acc ok or should i use a savings acc. Not sure it makes much difference?
2. This one is just to clarify if i transfer money out of my business account to put money away for a tax deductable course which i will be taking soon i have CR bank and DR drawings. Then when it comes to paying for the course i have DR bank and CR drawings and then pay for the course as CR bank and DR training acc. Si i have brought back into the business. Does this sound ok?
3. Another thing i have does is as i dont have a petty cash system. When i pay for parking or stamps etc with cash i have CR petty cash (in sage) and DR expense acc. Then at the end of the month i do a bank rcpt from business acc to petty cash for the amount spent which puts petty cash back to 0 balance. So CR bank and DR petty cash. Is this ok or is there another way of doing it?
4. If i have a client who pays for services by chq (£90)for april and may should i put the transaction through in april, but then my tax calculations for that month would be wrong. Thought may put the transaction in a customer rcpt acc in april then when i receive the bank statement transfer the money into the business acc for the date shown on the bank s/m. Or should i enter £45 into the bank in april and enter £45 in a pre-paid acc for mays service ( i have not debtors or creditors). Not sure what to do on this one to ensure P&L is ok.
5. and last question when i reconcile should i put the date i am reconciling on or the date on the bank s/m, or the date that i am going to reconcil to. If this makes sense.
Would appreciate any advice thank you.
I have just started using sage instant for sole trader and i would just like to clarify a few things about the postings. If anyone could answer these questions would be very grateful.
1. If i transfer 20% tax each month out of my business account. I have gone DR Drawings and CR bank acc. Then when jan / july comes and i need to pay the tax is it then CR drawings and DR bank then CR bank and DR tax acc. Not sure what to do at that stage. And is the drawings acc ok or should i use a savings acc. Not sure it makes much difference?
2. This one is just to clarify if i transfer money out of my business account to put money away for a tax deductable course which i will be taking soon i have CR bank and DR drawings. Then when it comes to paying for the course i have DR bank and CR drawings and then pay for the course as CR bank and DR training acc. Si i have brought back into the business. Does this sound ok?
3. Another thing i have does is as i dont have a petty cash system. When i pay for parking or stamps etc with cash i have CR petty cash (in sage) and DR expense acc. Then at the end of the month i do a bank rcpt from business acc to petty cash for the amount spent which puts petty cash back to 0 balance. So CR bank and DR petty cash. Is this ok or is there another way of doing it?
4. If i have a client who pays for services by chq (£90)for april and may should i put the transaction through in april, but then my tax calculations for that month would be wrong. Thought may put the transaction in a customer rcpt acc in april then when i receive the bank statement transfer the money into the business acc for the date shown on the bank s/m. Or should i enter £45 into the bank in april and enter £45 in a pre-paid acc for mays service ( i have not debtors or creditors). Not sure what to do on this one to ensure P&L is ok.
5. and last question when i reconcile should i put the date i am reconciling on or the date on the bank s/m, or the date that i am going to reconcil to. If this makes sense.
Would appreciate any advice thank you.
