Hi i’ve just started trading and using this software and maybe i’m dumb, maybe it’s my age or maybe i’ve never done any bookeeping before but i cant seem to get my very very simple accounts right in this software. My P&L shows me -£124 but the account (until i enter another purchase from yesterday) is in the black!
Looking at the balance sheet is even more confusing, i have brought tools in and given them a second hand value, i entered them as directors loan but the balance sheet seems to show two different figures for these. Any chance someone could take a look and tell me what im doing wrong? i need to loan my company money from my personal account but if i cant make the very few entries balance properly i’ve got no hope of continuing on a path where i’ll be comfortable come year end. FYI i paid £100 in to my company account at start of trading as a purchase for the shares (i’m the only share holder/director)
Adaptive Electrical Services Limited
I’m afraid we can’t provide specific advice on your accounts. The balance sheet is simply a balance of all transactions posted to any nominal account within the range of 0 - 3000 (assets & liabilities). If you journalled in the acquisition of the tools from Plant & Machinery to Directors Loan then this would show as two separate balancing entries on the balance sheet. This would be expected.
If you have an accountant or bookkeeper I would have a chat with them just to verify what you’ve done. UK Business Forums is also handy for general accounting advice.
The Profit and Loss Account shows a loss because you have only entered expenses amounting to £124.29 with no sales, therefore your sales less your expenses = -£124.29.
The Balance Sheet is correct from what you have entered, the tools purchased have been debited to ‘Fixed Assets: Plant and Machinery’ and the ‘Director’s Loan Account’ (DLA) has been credited accordingly, the difference in the balance of £100.00 on the DLA is due to the journal entered for the payment of shares, this can be corrected by following the answer to your next question below.
I can see that you entered a journal for the payment of share capital, although this has been entered incorrectly, it’s also easier to work from the bank and use the tagging feature, follow the steps below to correct:
Delete the ‘Shares’ Journal by going to ‘Reports >> Journals >> View Details >> Delete All Journals’:
Enter Paid Up Share Capital:
One the ‘Shares’ Journal has been deleted, go to the company bank account on Quick File and enter the £100.00 paid into the company account at the start of trading. You can either enter this manually, upload the bank statement or use the bank feeds. In this example the manual method is used by clicking ‘Input New Transaction’ on the bank account, make sure to enter the correct date as shown on company bank statement:
@Glenn I understand you cant give specific advice and thank you for your reply but my question was more aimed at how do I record these properly rather than fumbling my way through it, my accountant wasn’t sure how to use the system and pointed me in the direction of journaling everything to the DLA.
@Joe thanks for looking in to my account and given that detailed helpful advice, I’ve done as you’ve pointed out, now maybe I wont be creating a trail of carnage to sort out when my year end accounts get done, although im sure i’ll be back with other inane questions