Sole Trader trying to clear up my suspense account

[InfernalMachine]

Good morning. I was wondering if you could help me better understand this with regards to bank tagging.

1. I make a work purchase from the business account and tag it to an invoice - all good!

2. I make a non work related purchase from the business account. That’s now sitting in my suspense account. How do I tag that to clear it?

3. I get a credit note from a supplier for faulty goods. Do I just tag that as a payment?

4. I introduce my own money into the business account from another account

Any/All help greatly appreciated

Thank you

[QFSian]

Hi @InfernalMachine

Point 2:

@InfernalMachine

I make a non work related purchase from the business account. That’s now sitting in my suspense account. How do I tag that to clear it?

How you handle this would depend on whether you are a limited company or a sole trader. If you’re a limited company, you can tag the payment as a transfer between accounts to the Directors Loan Account. If you’re a sole trader, you tag is as a payment between accounts to the Proprietor Drawings Account.

For more information about both of these, check out the following:

• Limited Company Bookkeeping - The Basics
• Sole Trader Bookkeeping - The Basics

Point 3:

@InfernalMachine

I get a credit note from a supplier for faulty goods. Do I just tag that as a payment?

How you handle this depends on the circumstances of the credit note, so I’ll leave you with the link to the generic credit note help page: Managing credit notes

Point 4:

@InfernalMachine

I introduce my own money into the business account from another account

Introducing capital to your business can be handled in the same way as making personal payments from the business. Tag the payment as a transfer from either the Directors Loan Account or the Proprietors Drawings Account.

I hope this has helped, but if you have any further questions, please don’t hesitate to reach out.