I would be grateful for some expert guidance with posting this to Sage.
Sole-trader with £3,000 of expenses on behalf of the Company paid out of pocket over the year. This has been set up as Creditor under Sole Trader Name - Expenses as they were due to be reimbursed before year end. Sole Trader has decided not to reimburse himself so this now needs to be shown as Capital Introduced. Would it be correct to CR Capital Account and DT Loan Account then Bank, Supplier and pay each expense from Loan Account? This would give the Correct Figure for Capital Introduced and clear expenses from Creditor Account without showing through the Current Account as a payment. Or is there a better way to post this in Sage? I would appreciate your advice.
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Post A Credit Note
Dr Creditors Cr Capital introduced by posting a Credit Note to clear the balance on the Purchase Ledger account and coding the Credit Note to Capital Introduced.
Assets
Hi,
As a sole trader I initially introduced capital to buy assets, I have now commenced trading as a ltd Company using the assets from my sole trader business, how would I transfer to ltd company.
Could I reduce the capital introduced (sole trader)by the current value of the assets ?
Would the ltd comp have to purchase the assets ?
I would really appreciate your help