The Book-keepers Forum (BKF)

Post Info TOPIC: Cash Sale


Member

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Posts: 23
Date:
Cash Sale


Hi 

 

Whats the correct entry for a sole trader who has been paid in cash which has been debited to his personal account?

 

The sales invoice remains outstanding and I need to sort it out before year end

 

Is it as simple as:

Dr Drawings

Cr SLCA

 

Reasoning being that the owner has essentially taken the cash generated by the sale from the business in to his personal account?

 

Thanks

 

Andy



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Expert

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Posts: 1811
Date:

Yes: It's as simple as you think: credit the sales ledger account to clear the invoice, and debit drawings to show that the funds have gone directly to the sole trader.

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Vince M Hudd - Soft Rock Software

(I only came here looking for fellow apiarists...)



Member

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Posts: 23
Date:

Thanks

and i'm guessing you work the write offs the same on the PL?

I've got Credit balances showing on supplier accounts against invoices which are not on the up to date supplier statements...

in the likelihood that these invoices have been paid direct by the owner through personal means, is it the same process:


Dr PLCA

Cr Capital Intro


Regards

Andy

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Expert

Status: Offline
Posts: 1811
Date:

In principle, where you're reasonably confident the items have been paid by them, it'll be a debit against the invoice (if it's showing as o/s on the purchase ledger) or a debit to an expense (if it's not already on the purchase ledger) with the credit going to capital introduced.

Always exercise a little care with this, however, and rather than just assume the sole trader has paid things privately, question whether he has.

__________________

Vince M Hudd - Soft Rock Software

(I only came here looking for fellow apiarists...)

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