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Author Topic: Accounts HELP please  (Read 1808 times)

Penninehillbilly

  • Joined Sep 2011
  • West Yorks
Accounts HELP please
« on: January 11, 2016, 02:00:33 pm »
Hi
As usual, trying to rush accounts and head is in a spin.
Last year OH bought a new van with private money ie putting capital in?

He paid via his debit card

Any ideas how I put this through accounts?

We work on a 'Sage' accounting system,
I work on excel during the year, it was simple there :-)
I can't seem to get my head round how to put it in
I think I've managed to take it out of the cap. acc instead of putting it in.
Actually, writing that I think I'm seeing where I've gone wrong, but any advice would still be welcome.
No, had another quick think, more confused than ever,
time for a break and a bit of fresh air I think.

Scarlet.Dragon

  • Joined May 2015
  • Aberdeenshire
Re: Accounts HELP please
« Reply #1 on: January 11, 2016, 08:52:09 pm »
Ordinarily the entries would be:

Debit your non current assets account (vehicles? property, plant & equipment etc) and Credit the bank or cash account.

In this instance, the money didn't come out of the business bank account but from a personal account, so it's an owner's investment in the business.  You therefore need to adjust your balance sheet accordingly.

Credit Shareholders/owners Equity Account (Additional capital paid in etc); Debit non-current assets account (vehicles).

Hope this helps.  You can get a more thorough explanation from http://www.accaglobal.com/content/dam/acca/global/PDF-students/2012t/sa_may08_patton1.pdf

You may also want to sign up for the ACCA-X course.  It's free, runs several times a year and gives the basics.  It's designed to encourage people who may be thinking about a career in accountancy to learn the basics before they start studying properly.  However, there is no obligation to sign up for additional study, and for many people who do their own books it's an excellent grounding/foundation to start from.

I hope this helps?
« Last Edit: January 11, 2016, 09:21:16 pm by Scarlet.Dragon »
Excellence is the result of caring more than others think is wise, risking more than others think is safe, dreaming more than others think is practical and expecting more than others think is possible.

Penninehillbilly

  • Joined Sep 2011
  • West Yorks
Re: Accounts HELP please
« Reply #2 on: January 11, 2016, 09:44:35 pm »
Thanks SD, i did go on courses some years ago, and usually quite happy with what I do, but my head is spinning with sorting out mistakes I previously made while entering figures late and taking short cuts :-(.
Trouble is i leave accounts (OH's business) till last minute because I want to be outside
I think I just put the figures in the wrong way round,  trouble with sage is if you make a mistake it's a pain to sort out. I just backtracked to a saved file and left this entry to the end of the quarter,   makes sense now. :-)

Old Shep

  • Joined Feb 2011
  • North Yorkshire
Re: Accounts HELP please
« Reply #3 on: January 11, 2016, 10:07:41 pm »
Yes journal Debit Fixed assets Motor Vehicles, Credit owners loan account.
Helen - (used to be just Shep).  Gordon Setters, Border Collies and chief lambing assistant to BigBennyShep.

Scarlet.Dragon

  • Joined May 2015
  • Aberdeenshire
Re: Accounts HELP please
« Reply #4 on: January 11, 2016, 11:08:18 pm »
Thanks SD, i did go on courses some years ago, and usually quite happy with what I do, but my head is spinning with sorting out mistakes I previously made while entering figures late and taking short cuts :-(.
Trouble is i leave accounts (OH's business) till last minute because I want to be outside
I think I just put the figures in the wrong way round,  trouble with sage is if you make a mistake it's a pain to sort out. I just backtracked to a saved file and left this entry to the end of the quarter,   makes sense now. :-)

When all else fails, if you've done things the wrong way around, write down on a piece of paper what you already entered (First Transaction) and then enter the exact opposite (Second Transaction).  It will have effect a reversal of the accounting entries (I'm not familiar with SAGE so don't know if you can generate a system reversal easily).  If you've put it in the wrong way round (First Transaction), then entering this Second Transaction nullifies the first, and entering the Second Transaction again (Third Transaction) gives you the entry you wanted in the first place.

It's not the tidiest way of doing things, but it results in the correct outcome and provided you have written it down on a sheet of paper to support and explain the entries, it's auditable so will pass any accounting scrutiny.

We'd all rather be working outside than doing accounts (including the accountants)!!!
Excellence is the result of caring more than others think is wise, risking more than others think is safe, dreaming more than others think is practical and expecting more than others think is possible.

Penninehillbilly

  • Joined Sep 2011
  • West Yorks
Re: Accounts HELP please
« Reply #5 on: January 12, 2016, 09:31:23 am »


It's not the tidiest way of doing things, but it results in the correct outcome and provided you have written it down on a sheet of paper to support and explain the entries, it's auditable so will pass any accounting scrutiny.

We'd all rather be working outside than doing accounts (including the accountants)!!!

Trouble is i like things nice and tidy, so keep going back to last saved file before an error, and redoing, but to do the reverse transaction is sometimes the only way if I discover an earlier mistake already reconciled.  Don't like showing I make mistakes :).
Did the double reverse entry last year and wrote down why in a text file, now can't find the file, cant remember the details, pen and paper sounds a good idea now  ::)

doganjo

  • Joined Aug 2012
  • Clackmannanshire
  • Qui? Moi?
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Re: Accounts HELP please
« Reply #6 on: January 13, 2016, 11:55:33 am »
How about switching to an online package with instant free non-judgemental help such as Liberty (which I've been using for the  charities I'm involved with for two years) or Xero which I'm about to change over to.  12 a month for  Liberty, not much more for Xero and all your reports are automatically generated.
Always have been, always will be, a WYSIWYG - black is black, white is white - no grey in my life! But I'm mellowing in my old age

Penninehillbilly

  • Joined Sep 2011
  • West Yorks
Re: Accounts HELP please
« Reply #7 on: January 13, 2016, 12:30:05 pm »
Sorted thanks, all made sense when I'd played about a bit ( VAT,RFL etc). Hope the accountant thinks the same  ::)
When all is straight forward i like the system we have, it's only when I make stupid mistakes when in a hurry, usually after waiting till last minute, while waiting for OH to search through the dross in his van and bring his receipts in for the qtr., then struggle to balance everything when completing final accounts.

 

VAT accounts

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