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

Question asked by Graeme Loudain 6 years ago

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?



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,


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