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journal entry for

  • 29-07-2011 8:11pm
    #1
    rmflsdl
    Registered Users, Registered Users 2 Posts: 24 ✭


    Hi guy,

    I need some advice from you.

    There is a startup business. It's being set up. we are now at a preparation stage for business next year. boss wants me to record some expenses such as food, transportation,etc. He told me that it's startup costs so they can be reimbursed after it's set up.He calls that owner's loan.
    That's what i'm confused.
    what is the journal entry for this item, for example, food at restaurant .

    Dr sundry expenses ??? or startup cost ???? 50euro
    cr cash ???? or owner's conribution ???? 50 euro

    another example,website set up cost

    Dr website set up cost???? or startup cost????
    Cr cash?? or owner's contribution

    I have no idea which category I have to put them under.

    I would appreciate it.


Comments

  • #2
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,685 ✭✭✭barneystinson


    rmflsdl wrote: »
    Hi guy,

    I need some advice from you.

    There is a startup business. It's being set up. we are now at a preparation stage for business next year. boss wants me to record some expenses such as food, transportation,etc. He told me that it's startup costs so they can be reimbursed after it's set up.He calls that owner's loan.
    That's what i'm confused.
    what is the journal entry for this item, for example, food at restaurant .

    Dr sundry expenses ??? or startup cost ???? 50euro
    cr cash ???? or owner's conribution ???? 50 euro

    another example,website set up cost

    Dr website set up cost???? or startup cost????
    Cr cash?? or owner's contribution

    I have no idea which category I have to put them under.

    I would appreciate it.

    If it's a sole trader, the cr entry is Capital Introduced, if it's a Ltd co then the cr entry is Directors Loan.

    The dr entry will be either charged to expenses, or to an asset in the balance sheet (I.e. If the website is an ecommerce site and/or is expected to generate income for the business over a period >1year then it should be recorded as an asset and then it can be written off over it's useful life).

    As for the other items such as motor/travel they are clearly expenses.

    Be careful about claiming for food though, as it may not be tax deductible.

    I'd recommend you have a look at this (particularly Chapter 3):
    http://www.revenue.ie/en/tax/it/leaflets/it48.pdf


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