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Thread: Pastel Help needed urgently

  1. #1
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    Pastel Help needed urgently

    How do I treat a loan amount that was used to purchase equipment by a director. This loan amount did not pass through the bank.

    If I credit the loan account , and debit the asset account , the asset increases. But I want it to decrease because its a payment.

    Please assist

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    If the Asset is a piece of equipment it mustn't decrease. It must remain the same until you start doing depreciation journals or sell it.

    When the director pays for the asset: D Asset, C Director loan account.
    As the company repays the director: D Director loan account, C company bank account.

    Make sense?

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    manob (23-Feb-15)

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    BusFact is correct. Asset only decrease when depreciating

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    manob (23-Feb-15)

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    Quote Originally Posted by prettypegagirl View Post
    BusFact is correct. Asset only decrease when depreciating
    thanks prettypegagirl

    but what I have is a different situation. the assert was bought, then I invoiced the supplier, one of the directors got a loan from finance houses and the assert was paid. the loan amount did not pass through our bank. now the directors want the payment to appear in our management accounts. in doing that that is when I am facing problems with the accounting treatment of the payment.

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    " then I invoiced the supplier"? Do you mean you captured the supplier invoice into Pastel? If so, lets say the asset cost R100k, then:

    1) Capture the supplier invoice on to pastel which you seem to have already done. This should D asset C supplier account.
    2) The director paid the supplier directly from his personal account, so you no longer owe the supplier but instead owe the director. D supplier account and C director loan account

    Now you should have in your accounts TB an asset for R100k and a loan from the director for R100k. It will only show up on your balance sheet and not your income statement.

    It does not have to pass through your bank account, but because it didn't you have to do the general journal listed in(2) above.

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    manob (24-Feb-15)

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    Quote Originally Posted by manob View Post
    thanks prettypegagirl

    but what I have is a different situation. the assert was bought, then I invoiced the supplier, one of the directors got a loan from finance houses and the assert was paid. the loan amount did not pass through our bank. now the directors want the payment to appear in our management accounts. in doing that that is when I am facing problems with the accounting treatment of the payment.
    Follow the steps from BusFact and remember The loan from the finance house will be subject to interest/finance charges and you will need to add the interest to the loan from director too as and when this are allocated. C Director Loan; D Interest Paid

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    manob (24-Feb-15)

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    Quote Originally Posted by BusFact View Post
    " then I invoiced the supplier"? Do you mean you captured the supplier invoice into Pastel? If so, lets say the asset cost R100k, then:

    1) Capture the supplier invoice on to pastel which you seem to have already done. This should D asset C supplier account.
    2) The director paid the supplier directly from his personal account, so you no longer owe the supplier but instead owe the director. D supplier account and C director loan account

    Now you should have in your accounts TB an asset for R100k and a loan from the director for R100k. It will only show up on your balance sheet and not your income statement.

    It does not have to pass through your bank account, but because it didn't you have to do the general journal listed in(2) above.
    Thanks a million BusFact

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    Will someone please assist me with Pastel Partner forms designer. I need to increase the text height in the detail (center) part but it does not allow me to change the height, their is no option. The reason for this is that once the documentation is printed it is written on by hand and I need extra spacing. And suggestions? Thank you

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    Hi All

    Please assist me if what I am is right in Pastel. For my credit sales, I created accounts for all debtors we deal with often. Now my problem is, the invoice amounts are being posted to debtors control account, when the double entry that I want should be Dr Debtors Acc Cr Sales (fee Income.)

    Please assist.

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    Quote Originally Posted by manob View Post
    Hi All

    Please assist me if what I am is right in Pastel. For my credit sales, I created accounts for all debtors we deal with often. Now my problem is, the invoice amounts are being posted to debtors control account, when the double entry that I want should be Dr Debtors Acc Cr Sales (fee Income.)

    Please assist.
    Debtors Control is the Debtors Account, Where the other leg end up will depend on how you process the invoice
    How do you post these invoices? When creating the invoice, you can allocate them to the Sales (fee Income)
    Otherwise use Sales Journals

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