Business expense with personal account funds

Question asked by Ross Llewelyn 11 years ago

I've just started my 30 day trial and have a question about my opening balance.

My business started up this, (2013/2014) tax year however my bank was delayed in opening my business account in time for me to fund it with my starting capital in order to make some initial business expense payments.

Because of this I had to keep my starting capital in my personal account and make these first few business expense payments from there.

If possible, could someone let me know how I should show this in my accounts?

Thanks in advance for any help, it's much appreciated.

NB I am a sole trader and an not VAT registered.

CashbookUpaidBills
Accounting Accounting
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Hi Ross,

You can set up a loan account to represent you personal account by navigating to Money > Bank Accounts > Add the selecting Loan Account.

You can then create a Money Out transaction to represent the business expenses.

Your business account will then owe your personal account.

Kind regards,

Berhan

11 years ago

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