General questions


J

Jan

I apologise in advance if what I am about to ask is obvious, but I am just
trying to start some basic bookkeeping for our new small business with
TurboCash and have run into uncharted territory.
If anyone is able to help with the questions below it would be much
appreciated?
How do I account for interest received from our bank? Which journal do I
enter it into, and how do I enter it?
I understand that for purchases I should be accounting for carriage in
separately from the actual item, but again, I do not know in which journal
to enter this or which account are affected.
How do I enter purchases for stock items as opposed to purchases for
consumables, stationery etc?

Thanks
J
 
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T

Troy Steadman

I apologise in advance if what I am about to ask is obvious, but I am just
trying to start some basic bookkeeping for our new small business with
TurboCash and have run into uncharted territory.
If anyone is able to help with the questions below it would be much
appreciated?
How do I account for interest received from our bank? Which journal do I
enter it into, and how do I enter it?
I understand that for purchases I should be accounting for carriage in
separately from the actual item, but again, I do not know in which journal
to enter this or which account are affected.
How do I enter purchases for stock items as opposed to purchases for
consumables, stationery etc?

Thanks
J
Hi Jan

I've just downloaded TurboCash and in 17 weeks should have figured out
how to use it (certainly *looks* good). In the mean time some general
points:

Interest Received
Are you bookkeeping for a Limited Company? If so is Income Tax being
(incorrectly but it very often happens) deducted at source?

Carriage Inwards
Unless you are Elizabeth Smith or send a Pickfords low-loader to Norway
to collect your goods forget Carriage Inwards. Add it to the cost of the
goods because that *is* part of their real cost. If it is easier to
analyse out you need a Cost of Sales Nominal Ledger account.

Stock
Forget Stock, on the last day of the Accounting Period you will look
around your warehouse and office, add up what is there and post a single
journal which will auto-reverse the next day.

That's the theory anyway!


--
 
J

Jan

Hi

Thanks for the pointers!

Re: Interest Received
The accounts I am looking at are for the period of time that we operated as
a Sole Trader, although in the next few months we will change to either
limited company status or limited liability partnership status, if that
makes a difference?

Thanks
J
 
T

Troy Steadman

Thanks for the pointers!

Re: Interest Received
The accounts I am looking at are for the period of time that we operated as
a Sole Trader, although in the next few months we will change to either
limited company status or limited liability partnership status, if that
makes a difference?
Hit CTRL-T and up pops the most important report of them all, the Trial
Balance. Accounts 0-499 are Profit and Loss items - Income and
Expenditure if you prefer - 500-999 are Balance Sheet items, things
which are being carried forward into future periods - Motor Cars,
Debtors, Bank Accounts, Creditors, VAT etc.

Typically you will need to create a new Account which will have a code
slightly above the Cost of Sales code 100-000, either a Sub Account eg
100-001 or perhaps a new category 101-000.




--
 
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T

Troy Steadman

Troy Steadman said:
Typically you will need to create a new Account which will have a code
slightly above the Cost of Sales code 100-000, either a Sub Account eg
100-001 or perhaps a new category 101-000.
Either method works fine:

Edit/Accounts/General Ledger/New/Account then select an Account to add a
sub-account to it or alternatively create a completely new Account.
CTRL-T to view it.

As to your "changing" to a Ltd Co that will want a bit of planning.
NewCo will be a completely different entity to OldBusiness, the only
thing you will (presumably) want to "merge" is your General Ledger with
its settings intact!




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