How do I explain an income line on bank statement that is made up of multiple sales and purchases?

Question asked by Graeme Loudain 10 years ago

Hello.
Here is an example

Single income line on bank statement is £1000.

This is made up of three different customer invoices £210, £320, £530 (Total sales £1060) plus three payments to a supplier with purchase invoices of £10, £20 and £30. (Total £60). Net total £1,000.

How do I 'explain' this please?

Thanks

Graeme

Accounting Accounting
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1 Reply

Hi Graeme,

The correct way for doing this would be to receive and pay both the invoices and bills by using a contra account. Head to Money > Bank > Accounts > Add. Select a bank account and name it 'Contra Account'. This will act as a virtual account to settle the bills and invoice.

Having done this, when explaining the amount on the imported statement you will need to action this as a transfer from the contra account to the business account. Select the transfer tab to do this (it should be on transaction by default):

Kind regards,

Berhan

Best answer
10 years ago

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