Capital introduced

Create new ledger accounts

If your company is a partnership, set up separate ledger accounts for each partner. This helps you to keep track of what each partner has invested into the business. If you have a partnership, create a new ledger account.

Use the following details:

If you are introducing capital as assets, we have already set up ledger accounts for:

1. Property
2. Plant and machinery
3. Office equipment
4. Fixtures and fittings
5. Vehicles.

If you have a different kind of asset, create a new ledger account.

Use the following details:

About Nominal codes

We recommend the Nominal code above based on our default chart of accounts. If you have a different numbering system, use the number that suits your business.

We use the Category, rather than the Nominal code to determine where the values appear on your reports.

1. From Settings, choose Business Settings.
2. Select Chart of Accounts, then New Ledger Account.

3. Enter the details and Save.

Record capital introduced as money

With money paid into your bank account, record the receipt of the money. Use the new Capital Introduced ledger account.

There are two ways you can do this:

1. Create a new receipt from your bank feed or bank statement import each month.
2. Enter this yourself as an Other Receipt. If you're using bank feeds or importing from a bank statement, match the with the receipt.

Using bank feeds or import your bank statement

When you process your imported bank transactions:

1. Select the Capital Introduced ledger account from the What drop-down list.
2. Select Create.

Manually create bank transactions

1. From the Banking tab, choose New. Select Sale / Receipt and Other Receipt.
2. Enter details such as date, amount received and relevant reference.
3. Enter the total amount of the loan. Choose the Capital Introduced ledger account. Do not record any VAT.

Record capital introduced an assets or stock

Record this as a journal.

Remember a journal must always have equal debit and credit values.

1. From Journals, choose New Journal.
2. Enter the reference, date and description field required.

3. Enter debits and credits in the following ways

VAT registered businesses

If you’re VAT registered and you paid VAT on the original purchase of the asset, you may be able to reclaim the VAT on this.

For more information about how to record fixed assets.

Read our article Purchase a fixed asset >

• Sell or write off an asset
• Depreciate an asset
• Appreciate an asset