book keeping question!

[spit nolan]

I'm self employed and have been attempting to do my own books. So far I have completed all of the incomings, however it is with the outputs I'm struggling!

All cheques recieved go into my Business Bank Account and then I pay myself a wage into my Personal Account. Any diesel or equipment etc I need I pay for out of my Personal Account and keep the receipts. How do I put this into my business outgoings/books when I have paid for them using my personal account?

Any help appreciated!

[dee5]

The only way i can think of doing it would be to submit expenses and then pay yourself from the business account. That way they things you buy for the business but pay for from your personal account have been accounted for in the business and you have been reimbursed.

Dee
x

[-Zorro-]

If you are using manual bookkeeping system then you can have a separate collumn for privately paid expenditure.....so you have 3 ......Cash .....Bank ....and Privately paid.

If you are using Simplex D Cashbook there may not be space to do that. However you could write them in in a different colour and do two subtotals at the bottom of the page....using say the cash collumn.

Or like dee says you could draw the money out as a cheque or cash and analyse the expenditre to what it was paid for.

You could even do a "ghost entry" as follows:-

Post in cashbook as cash expenditure analysing between what you spent it on......then post an amount as sundry cash receipt as capital introdroduced from you to cover the amount of the expenditure. As if you actually put the cash in to the business to pay the expendite. The transaction will balance out.