small questions

captainstacy

Hi

I was self employed (Sole Trader) during the early part of 2009 before I had to go on social welfare and am now trying to do my accounts for the year.

Do I create a seperate T account for my Social Welfare payments?
How do I handle purchases made on my credit card?

I ransfered money from my saving account into my personal account, do I call this capital?

Hope some smart can help me, I'm sure these questions are simple to those of you in the game.

Cheers for any pointers

DoMyBooks

Social welfare payments go on your form 11 but not on your trading profit and loss account.

Any funds you entered into the business are capital .

Im not sure about the credit card question?

captainstacy

Cheers DoMyBooks.

Any idea if I include my home mortgage & credit card bill as current liabilities on my Balance sheet?

These are personal not related to work but since I am a sole trader I think they should.

DoMyBooks

No the balance sheet is for balances wholly and exclusively for the trade.

It may be worth your while getting an accountant or tax advisor to look over the form 11 it may save you tax or heartache in the future.

captainstacy

Thanks for the help DoMyBooks

I really only had about 12 transactions all year so it should be very straight forward.

My problem was being a sole trader I was unsure of if there was a line between trade and personal.

maddogcollins

There is a definate line. Only items "Wholly and exclusively" for the trade go into your trading profit and loss account and balance sheet.

daisey87

But any personal payments such paid from the business account do go onto your balance sheet as drawings - this would include the home mortgage if paid from the business account and also the credit card if used for personal items and is in the business or sole trades name

smcgiff

OP,

You've probably figured out by now that it's important to keep separate personal and business accounts.

As it stands you seem to be overly complicating matters. I would advise you to completely ignore non business transactions and just include business transactions.

I imagine Revenue wont mind if you fully treat bank interest and charges as a business expense.

You can use an element of what would be considered private expenses if partially used for business (i.e. car expenses), but you might be better off to keep it simple.

captainstacy

Thanks everyone.

I have just totally ignored private transactions and made it all very simple.
I just hope revenue don't come and break my door down come october 31