I purchased some equipment for my business but used the wrong card to pay for it (by mistake). I used my own personal account rather than the business account. I haven’t added my own personal bank as an account in QuickFile and don’t really want to as there are too many transactions and only a few are from it for business.
Is there an easy way of accounting for this purchase in QF so that it shows up as a purchase and be able to categorise it (as Capital Allowance???). I am a sole trader.
Mark it as paid from the “proprietor drawings account”, which is a kind of virtual bank account that tracks money moving between you as an individual and you as a business.
@ian_roberts - I was thinking of doing that but then surely it will just be like a personal transaction and not affect the P&L account. I assume that I can claim it as capital allowance or an expense.
Are you going to repay yourself from the business? If so, you can show the original transaction as being paid by the “proprietor drawings account” and then a transfer between the business bank account and the proprietor drawings account.
Hope this helps.
The profit and loss is based on sales and purchase invoices, not movements of money. It makes no difference if a purchase invoice is paid from the business bank account, the petty cash box, or out of your own pocket (i.e. from the drawings account), if it’s a valid business expense it will show in your P&L. As a sole trader there’s no distinction between money that belongs to you and money that belongs to the business, profit is simply sales minus purchases and overheads, however they’re paid for.
@ian_roberts - ok, thanks. I understand now.
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