I think I can use journal entries to sort out this problem, but I’ve never used them before so I’m not sure how to go about things.
I have linked one of the Director’s business credit cards to QuickFile which is used to make some stock purchases. The problem is, there are a number of outstanding entries of small amounts for personal subscription service payments made on the account. These payments have been cleared from the Director’s personal bank account which is not connected to QuickFile.
This practice has now stopped, but I need to find a way to clear them which journals seem ideal for. But I don’t really know what sort of Nominal Accounts the transactions should land in because essentially, they are nothing to do with the business! Are there any pointers for how this can be cleared up?
there are a number of outstanding entries of small amounts for personal subscription service payments made on the account.
What types of transaction are they showing as?
Are you planning on writing these off?. If you are you could move the balances to an overhead code.
I could not suggest an example without knowing what the transactions are(or examples of them)
Well, they’re all currently untagged and they are a mix of ‘money out’ payments to Amazon and ‘money in’ payments from the Director’s personal bank account (which isn’t linked by a bank-feed). I’m happy to write them off in the most convenient way possible which causes the least headaches for the proper accountants!
You could tag them to an overhead code.
It is probably a question for your accountant (As I am not a registered accountant nor bookkeeper)
You wouldn’t need to use a journal though. Just tag the transactions (shown below)
The way to account for these is to tag them to the director’s loan account. If it is a business card and has been used (inadvertently or otherwise) for personal goods, then this is the same as the company lending money to the director. Most companies operate a director’s loan account (or current account) to account for any transactions between the company and it’s director(s).
Okay, thanks to @QFSteve and yourself for these replies! I hadn’t got a clue what the Director’s Loan account was for but that’s a great explanation
This topic was automatically closed after 7 days. New replies are no longer allowed.