[Article] Shareholder loan

[Zakithi]

Greetings please help

I am new in Bookkeeping I'm getting confused

I am prossesing cash book using bank statements , the director purshased fuel, KFC , tollgate, airtime , the company was not registered for vat that time whow do I record these transactions ,5400/000 or where as now the company is registered for vat what should I do, please help

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[AnnieA]

Good Day Zakithi,

If your are processing the company's cashbook from bank statements I am presuming the transactions you are referring to was done with a card linked to the account. Regardless of whether the entity is registered for VAT or not, all valid business expenses can be posted to the income statement (the relevant expense account). So if these expenses were for traveling for business purposes they need to go to your expense accounts. If the purchases were for his personal use it needs to go to his Loan account. As far as i know You are only liable for Output VAT from date of actual registration, at the same time you are also only entitled to claim Input VAT on valid vat able purchases made from the date of registration. Historical transactions will therefore not be valid Input claims.