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Help please.

My Limited Company has invested money into other businesses via CrowdCube. How would I record this?

I couldn’t find a suitable category, should I set this up as a bank account?

Also how would I then note income and dividends?

Could any of this be recorded as a reward?

Thanks in advance.

This is a question for an accountant not this forum. And I’d suggest you appointment one ASAP if you don’t know what you are doing.

So my accountant replied with:

“Please create an asset account ‘ Investments’.
Allocate all payments of this nature into above account. You can attach any relevant documents to these transactions within”

The only issue is I can’t find a feature for this in Quickfile, it does exist in Xero.

Any suggestions?

Chart of accounts. Create a nominal called investments and place it in the asset category.

Note that in QuickFile you can only directly attach documents to purchases, sales invoices, clients and suppliers, not to individual bank or nominal account transactions that aren’t associated with a sale or purchase record. You can have arbitrary collections of uploaded documents in the document manager but they won’t be cross referenced to particular transactions.

As the asset is in a crowdfund, do you suggest I use the “Debtor” or “Long Term Loan” sub-category.

By default I have to use a sub-category.

Thanks Paul.

Long term loans I’d guess

I’ve followed the advice above. A company I invested in has given me a return.

They also got bought out so obviously my original investment sum has also been returned.

How would I mark the return, minus the refund on my initial payment and any fees from the broker?

Hi @Naz_Haque

I would check with your accountant as to how to allocate the funds. Once they have confirmed we can help with how to show this in QuickFile

Hi beth,

They advised me to put this down as misc’ income which I’ve done.

HI @QFBeth,

Didn’t tag you into the above.

Could you guide please?

Hi @Naz_Haque

Apologies, I must have missed your reply.

So to confirm, you need to know how to tag this payment received as misc income?

Hi Beth,

Let’s say I bought £200 of shares in an unlisted company via my LTD last year.
This £200 was put into a nominal called investments and placed in the asset category.

The company I bought into got bought out and I received a payment of £2,200.

Obviously the full £2,200 isn’t a full return.

The £2,200 was paid into company bank account, I shouldn’t mark this all under misc income.

Question 1: How would I define the £200 as a return of my initial capital and separate this from the £2,200 incoming payment? The reality is my capital gain is £2k, not £2.2k

Question 2: How would I also create entries for any broker fees connected to the above (where I’m not provided with an invoice )

Hi @Naz_Haque

For the specifics such as defining the return or the broker fees, it’s usually best to ask your accountant as others have suggested above.

We’re not able to offer accounting advice, only support with QuickFile, I’m afraid. However, if your accountant can advise how they should be recorded, we can help guide you on how to do this within QuickFile.

Hi Both,

To be clear, my account has stated that I can mark the £200 as a return of capital investment and that the broker fee can be set up via manual entry as an invoice.

Obviously, I can set up a supplier for the broker fee and set a deduction from my account.

Where I’m stuck is I don’t know how to tag £200 as a return of capital from the “nominal called investments which is placed in the asset category.”

Thanks for bearing with me whilst I’m trying to explain this.

Apologies for any confusion.

Why not just tag the money in transaction as something else not on this list, split the payment in to two and assign £200 to your investment nominal and the remaining as the gain.

Off the top of my head that should work

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