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Newbie Question! How to account for previous business purchases?

KarenBiemanKarenBieman Member Posts: 1

I am just beginning my business and have signed up for Wave. Prior to setting up Wave and my business bank account, I made some business purchases I want to include in profit and loss statements etc. What is the best way to do that? They were paid for using my personal bank account/debit card that aren't linked to Wave, but they were business expenses. Thanks! This is all very new to me, so please be nice! ;)

in Accounting Technical Support

Comments

  • MerlinAccounts_UKMerlinAccounts_UK Member Posts: 177 ✭✭✭

    If you aren't fazed by journal entries you could just do a series of journals dated for the 1st day of your business, with each entry being posted as a debit to the relevant expenditure account in the nominal ledger and a balancing credit to your capital account, perhaps as owners capital.

    Alternatively enter each item as if paid by cash from the business and then enter corresponding money received (as cash) allocating the source as owners capital.

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