SageForum for UK versions of Sage 50- Help and support.

Hi,
Please would you help me ?I am stuck for 3 days now.
I am a soletrader from december and i used my private accounts to pay for materials so i created 3102 capital introduced and made payments from it but as i vat registred i cannot find vat ammount in control account ,where it is as i used T1 .I also tried to post capital introdused cr with T0 and 500 materials payment with T1 but there still nothing in control account.
Thank you!

Create a bank account for your private purchases.

Simply repay yourself during the year (using a bank transfer) or journal it into capital introduced at year end.

Hi,
Thank you for your reply.
I mean if i use journal entry to post expensesshould i ...
cr 3102 Capital introdused T1 £30.00
db 5000 Purchases T1 £25.53
db 2201 Purchases Control Acc. T1 £ 4.47
As we opened business account and now we want to take all money the business own us back as we do not take wages right now we need cashflow to pay bills and mortgage...etc so then when i now exactly how much money we put inn i will wright cheque for myself and take the money out ...
cr bank account for £2000.00
db capital account for £2000.00 all with code T0
Is it make any sense....?
I am study book keeping and at the same time trying to work out sage...
Would be very appreciated quick reply....
natalie

It is generally not a good idea to journal to the tax control accounts except for the vat transfers to the liability account..

This way listing the journals for the account make it very easy to see what has gone on and it is clean and easy to sort out any problems with reconciliation.

The net amount of transactions and their tax codes determine what goes on the turnover report for VAT. What you have done in your journals is to make introduction of capital into the business part of the turnover as well as the VAT element itself, which clearly they are not.

If you really MUST do it as a journal, then the tax codes should be...

cr 3102 Capital introduced T9 £30.00
db 5000 Purchases T1 £25.53
db 2201 Purchases Tax Control Acc. T9 £ 4.47


I strongly suggest you do:-
the expenditure as a bank payment T1 5000 for £25.53 + 4.47 VAT.
capital introduced as a bank receipt T9 3100 for £30

You could do these against a petty cash bank acocunt, personally I would do all personal expenses out of a new separate "expenses paid personally" bank account and then every so often (perhaps just once a year), do a capital introduced transaction to set it straight.

Hi,
Thanks for your reply!!!Please dont be mad at me...
The things are … from December 97 to end of February 98 (3 month) we used two private acc to pay business expenses as well as private. It would be very difficult to reconcile both acc at the end of the month…and from end of February we have business acc opened and used so from now it will be bank payments, there are no problems but what should I do with my past… What would be the right way to do it...
Thank You!

There is no "right" way, there are lots of different ways and the right one for you is the one you understand and like!

I would create a bank account for all the old stuff (or use petty cash) to account for all the payments.

You can then balance the account to zero using a directors loan account, a drawings account or actually write a real cheque from the real bank account and transfer the money to the account.