Company formation prepaid expenses

Accounting
1

I have just formed my private limited company, and starting with Quickfile at the same time.

I paid for the company formation expenses with my own cash (the business bank account is not open yet).

Is it correct to record the transaction as:
Dr Professional Fees
Cr Director’s loan a/c

Also, the New purchase form has no field for VAT. Is that because my company is not VAT registered yet?
(it might sound a dumb question to you… I’m a brand new user, thanks for your understanding).

2

Can’t answer your question on the costs, but can help with the VAT.

The VAT boxes will only show if the company is VAT registered.

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3

That sounds correct to me! You can raise a new purchase invoice, categorise the line item as ‘Professional Fees’ and when you come to pay it just make sure you pay it from the Directors Loan account. That way you’re keeping a track on what the company owes you.

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4

Thanks to both of you, that was helpful!

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