Accounting - how to log BACS paid into the wrong Bank?

Accounting
1

I currently have 2 banks one for my newly set up company and one for sole trader
an organisation i billed has paid into the sole trader account instead of the Company account. I have transferred the money to my Company a/c but don’t know how I log the payment to the sole trader - there is no invoice from this QF a/c and log the transfer from the sole trader a/c into the company a/c when there has not been the payment from the organisation into this a/c.

bookkeeping for both sole trader and company accounts are in QF but in different QF accounts if thats of help.

please help if you can

2

Hi @termeek

Here’s how you would log this. As an example, I’ll use £100.00 as the amount which has been paid into the Sole Trader (ST) account, but should be in the Company (Ltd) account:

Ltd Account
Mark £100.00 invoice as paid from the Director’s Loan Account

Then, when you transfer the money from the ST to the Ltd bank account, simply do the following:

ST Account
Current Account: £100.00 out, tagged as transfer to proprietors drawings

Ltd Account
Current Account: £100.00 in, tagged as transfer from Director’s Loan Account

I hope that helps?

3

Thank you that sounds simple enough! Will do that then.