[Question] General Journals for asset and p/loan

[PinsandNeedles]

Hi

I have a registered company but not registered for VAT. I took a personal loan from the bank (in my private name) to buy my machine, the debit order for the loan is also going off on my personal current account and not the business account. What is the journal entry to bring the machine in the business books and refund me for the debit order every month?

[Andromeda]

Debit Plant & Equipment @ cost with the total of the debit order X however months the repayment is. In other words cost + finance charges to you.

Credit Loan from shareholder for the same amount.

There are other methods that may be more appropriate, depending on the numbers and some other matters.

[PinsandNeedles]

Hi, just to make sure I have this

Dr Plant & Equipment @ cost with 95K (cost of machine), Cr Members Loan with 95K

Dr Members Loan with 3k (monthly debit order), Cr ???

Loan was for more than machine cost, so all extra and interest is for my personal account.

[Andromeda]

I'm not sure why you would want to Dr the loan account with the repayment. Unless you mean the company is repaying you, then yes.

[PinsandNeedles]

Hi, yes the company is repaying me the monthly debit order but what account would I then Cr?

[Andromeda]

Hi, the bank account gets the credit and your loan account gets the debit.

[PinsandNeedles]

Hi, thank you

Another question, if I have to do a credit note for a customer that was invoiced on 14% vat on Pastel, must I do the credit note also with the 14% or will it be the new 15%?

[Andromeda]

Hi, 14%