Hi all
Dont anybody laugh but i am still running Business basic software
i run a small busines and this software suits me for the time being, i am just setting a new accounts and need help in how to record a business expense paid for by me for cash
Sometimes i purchase an item for the business using my own cash, how can i record the reimbursment of this money back to me ( as an example petrol paid for with my own cash)
i was thinking of opening aliabilty account called "Reimburstments" then registering the expense as follows
debit: put the expense against Petrol expenses ( to record expense)
credit : and put the Reimbursments as a liability ( to show thwe money is owed to me)
then make a payment form the cheque account as follows
Debit : the reimbursment Account (to show the money has been repaid)
Credit : the cheque Account ( to take the money out of the bank account)
this way there would be no tax impilications for my reimbursment funds
any help would be greatly appreciated
Bonic