How to account for random payments/expenses

Hi,
I was wondering which nominal accounts I should tag the following under:

  • Incorporation fee for Companies House.

  • PCI-DSS compliance fee (to a company helping to sort out PCI-DSS compliance).

  • A payment for a paypal code. It may sound silly, but paypal paid £0.01 into my current account in order to validate it. This is not repaid by me, so what sort of payment should I record it under?

  • Sometimes, money is accidentally paid into my account in a lump sum for payment for a company invoice, as well as for a separate company/person entirely. The reason they do this is because they don’t want to pay two separate invoices! How should I record this money going in and out, when some of it is not a sale on behalf of the company? Or should I just delete the transaction and note as the amount for the company invoice only? (And deleting the outgoing payment to the other entity as well.)

Thanks!

That would go under ‘Professional Fees’.

That would also go under ‘Professional Fees’.

Using the above example, you would log a payment for the above invoice #1001 as being paid from the Directors Loan Account (DLA), therefore increasing your overdrawn DLA balance, see the example below:

Example:

- Invoice #1001 issued from Company to Client = £1200.00;

- Client pays into your personal account a bulk payment of £2500.00, this payment includes a payment for the above invoice and a payment for separate company/person entity.

You would log the payment for the invoice #1001 to your DLA, as shown below:

If you pay the funds accross from your personal account into the Business Account, simply tag as a transfer from your DLA to the business account, thereby reducing the overdrawn balance on your DLA.

The remaining balance of £1300.00 received into your personal account will need to be accounted either on your Individual Tax Return or as a DLA from another Company.

Thanks Joe, that’s really helpful. However, my question was actually regarding the opposite scenario: the bulk payment was paid into the company account, when only part of it was for a company invoice. How should I tag it? Am I right in thinking that I tag the payment as covering the invoice, and tag the rest as a payment from the DLA? Then tag the payment out to my personal account as going to the DLA again? Basically what you said but the other way around!

Also, the PayPal penny that they put in my account - what should it be tagged as?

Many thanks!
Jason

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