Accounts & Fun for the sole trader

9wetfckx43j5rg

Just a quick question to see if anyone knows the answer.

I used my personal bank account to purchase an item of equipment for my business, instead of using my business bank account.

Should I still list this transaction in my accounts, or ignore it?

MBateson

Yes, debit the expense or fixed asset account and credit Capital Introduced or similar.

TheCostumeShop.ie: Ronan

As above, or more simply put it in as expenses and re-imburse to your account from the business account.

9wetfckx43j5rg

Thank you. I'm just started to keep accounts/learn how to. I registered for tax this week. Have been operating since Feb, which is when I bought most of my equipment but only properly started really working on the business in august as I was in college. Low scale, one service a week, so hopefully the accounts/tax wouldn't be too complicated.

ScouseMouse

Could you not just write a company cheque to yourself and mark it for the item and to the supplier?

If I buy stock from my own wallet, I get the invoice and write myself a cheque. I bank the cheque but have it allocated to the invoice from the supplier.

billybunty

Easiest thing is write a cheque from your personal account to cover the cost of it!