I have purchase items for resale by cash from my own pocket.
General expenses have been purchased from my business bank account.
I’ve downloaded stock purchases into petty cash as paid.
Majority of sales have been cash which I have also downloaded into petty cash as this monies has not been paid into the business account.
It appears that I should have downloaded purchases paid by me in cash to Proprietors Drawings Account?
Cash sales would be downloaded into petty cash because of not being paid into the business account.
If this is correct, then at some point, I would pay monies owed to the proprietors drawings account from petty cash.
What is the quickest way to move the payments for stock from the petty cash account to the proprietors account.
Would I bulk untag these purchases in purchases and then bulk tag paid from directors drawing instead of paid from the petty cash account?
Obversely in purchases theres a mixture of tagged purchases from the business bank account and the petty cash account.
Alternatively maybe bulk untag and the delete the purchases paid from petty cash in the petty cash. Then import these purchases with the proprietors drawings account nominal code back into purchases?
Please advise. Thanks
You could untag and retag everything and that would make everything 100% correct but it is probably quicker/easier to just move the balance between accounts as a balancing payment and make a note of why. It all depends on how many transactions there are really and how much effort you want to put into it. It should be relatively easy to untag everything and bulk tag the purchases as paid from Proprietor Drawings though so I’d be inclined to go that route.
Also you mention Proprietors Drawing Account and Directors Drawing Account, usually the former would be for sole trader drawings and the latter for a director of a limited company. I assume you are sole trader?
Thanks for your reply.
It appears that paying for these purchases from the Proprietors drawing account is correct as im a sole trader?
I can’t seem to see how to untag the purchases.
Understand that bulk untagging is not available.
Grateful to know how to untag in purchases.
I assume that this would automatically delete the transaction in the petty cash account or would I just bulk delete them in the petty cash account?
Lucky i’ve made the suppliers name for these stock purchases as ‘‘cash purchase’’ which helps with separating them from other purchases made from the business bank account.
Worked out how to detag purchases.
Problem with bulk tagging with paid from Proprietors account is the purchase date.
It looks like i’m going to have to delete the purchases and import them again with the various paid dates and new nominal code.
Alternately im going to have to re tag them separately and change the date from today’s to the date I purchased the item.
Great way of sending oneself mad.
Hopefully im on the right track of not sending myself mad.
I believe if you bulk tag them there is an option you can select to mark as paid on the invoice date.
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