Credits and debits when journalling a bank account

[AESElectrical]

Hi, i’ve just started to try to use this software and at first glance appears confusing, i have 100 shares that i have put £100 in the bank for, how do i enter these? i have tried to create journals for my travel (code 7400) what category do i have the credit from? (i’ve never done any book keeping).

It appears odd to me to enter things twice but then they dont show in your balance either.

Hope someone can help me sort the muddle out.

Here’s a screenshot of what i have now http://www.adaptiveelectricalservices.com/qfsample.png

Regards,
Simon

[Glenn]

From the screenshot your entries are the wrong way around! This is a common mistake when using journals as debits and credits are actually reversed for banks. This means that when you’re journalling a bank account a credit in the journal will show as a debit on the bank account. Swap the journal around, save and recheck the bank account, you should be fine.

I see the share journal is going into the “Director’s Loan Account” but you mentioned that you deposited the money into the bank account? If this is the case you want to change that from 1201 to 1200.

In general my advice would be to get an online bank statement and import this into QF, once you have the current bank account looking right, just tag everything… job done! Also with this method you really don’t need to go anywhere near the journals.

Bank Tagging - How to do 3 months of bookkeeping in 30 mins

More information on bank tagging

[AESElectrical]

Thanks for the reply and info, i’ve swapped all the journals around and deleted the ordinary shares so the bank statement looks like this:
http://www.adaptiveelectricalservices.com/qfbankstatement.PNG
And the balance sheet looks like this:
http://www.adaptiveelectricalservices.com/qfpanl.PNG

Sorry for the images stored on my server but it just wouldn’t move past clicking the upload button for images here!

P.S i thought i’d have to use the journals for all my travelling from job to job, is that not the case?

Regards,
Simon

[Glenn]

The expenses look OK but presumably the payment for the ordinary shares should appear as money coming into the current account?

@AESElectrical

P.S i thought i’d have to use the journals for all my travelling from job to job, is that not the case?

It’s possible although I would enter each expense under a purchase invoice, if you are VAT registered you will need to do this to get an accurate VAT return. You can create the purchase invoice directly from the bank by tagging and selecting the option “Payment to a supplier”.

[AESElectrical]

I’ll change the journals for purchases then although im not going to be vat registered for a while, i have quite a few to add now.

I have the share money in the journal showing from Directors Loan to the business account is this correct?

(for some reason i still cannot upload images here or ctrl V them in)

[Glenn]

Those journals still look the wrong way around. You have credited the bank account on the journal but it should debited (i.e. money coming into the bank).

Oh regarding CTRL + V image upload this doesn’t work with Internet Explorer, it’s not supported by IE browsers. I would recommend updating to Chrome, you will also get a much smoother experience on Quick File and prob many other sites compared to IE 9 which you currently appear to be using.