How to process a purchase by owner

[Mike C]

Hi JeandA - I would pay the owner from the business bank account and then enter it in the cash book - putting it to "Office Equipment at Cost".

If the item cost more that R5000.00 you need a full Tax Invoice with all the business details and VAT number on it.



Entering it as 01 in the cash book would then allocate the VAT automatically.

Because it was bought on the boss's personal credit card, however, the VAT may not be claimed. If you have a review/audit and SARS request the documentation they would not allow it.