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RichGriff


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Payments from different bank accounts
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Hi,
I am setting up a set of accounts on SAGE 50 from scratch for a new business. My problem is my client has used different (2 x personal) bank accounts to make payments for various set up expenses such as computers office equipment etc etc. The business bank account was not used until 3 - 4 months later for other purchases. My client is VAT registered and wants to claim VAT on the earlier purchases so I will post each of the payments on the applicable nominal accounts (for the VAT return calcs) but do I need set up a SAGE bank account for each of the non business bank accounts in order to record the payment? Or is there another way I should do it?

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AngelaWBS


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Hi, and welcome to the forum.

I wouldn't set up 2 bank accounts if they are personal ones and not likely to be used again for business purchases.

For clients that make business purchases with personal money I would either set up an account within the bank dept called for instance personal funds and post the expenses there and then at month end journal them out to drawings/directors loan or journal in the expenditure debiting the expenses account and crediting capital introduced.

Hope that makes sense or even helps

Angela

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Angela
http://www.bookkeeping-suffolk.co.uk/
RichGriff


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Thanks Angela I have followed your first option and in addition I have debited the Purchase Tax Control account which accounts for the VAT for the VAT return

Thanks

Rich


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