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Sole Trader + Equipment = ?

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  • 05-03-2012 5:27pm
    #1
    9wetfckx43j5rg
    Closed Accounts Posts: 483 ✭✭


    I make videos freelance. I'm still in college.

    I registered a business name as a sole trader because I wanted to make videos under a name other than myself.

    I have a business sole trader bank account which I only just set up.

    I have a cheque for 1700 as a investment in the business which I am using to buy a camera.

    I am buying this camera on Ebay.

    I am not registered for tax yet.

    My question is should I put this cheque into the business account and pay the seller of the camera using that, or into my personal account and what are the ramifications of both?


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    #2
    EL_Loco
    Registered Users Posts: 901 ✭✭✭EL_Loco


    I'd put it in your company account, regardless of how you're going to pay for the ebay item.

    If you pay by personal means transfer the money out of the company account to your personal account, keep the receipt. then it's a capital expense for the company and becomes a company asset.

    also you'll have accounted for the money, if you put the money in your personal account it's invisible. I assume the point of setting up the company account was to track this sort of thing in the first place.


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    #3
    9wetfckx43j5rg
    Closed Accounts Posts: 483 ✭✭9wetfckx43j5rg


    Ok thank you :) I'll put it in the business account and work from there.


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