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Simple Double Entry Question

snezsnez New MemberRegistered Posts: 5
Client claims an allowance for Use of Home as office. Previous accountant has included this is P&L for the year. So my simple question is, what is the double entry for this ? Debit P&L, credit ??

I have initially credited the Clients Capital Account - is this correct ?

I have been looking at this for so long, I have gone cross eyed.

Any advice would be gratefully received.

Comments

  • Becky VBecky V Trusted Regular Registered Posts: 374
    snez wrote: »
    Client claims an allowance for Use of Home as office. Previous accountant has included this is P&L for the year. So my simple question is, what is the double entry for this ? Debit P&L, credit ??

    I have initially credited the Clients Capital Account - is this correct ?

    I have been looking at this for so long, I have gone cross eyed.

    Any advice would be gratefully received.

    Where i work we debit use of home which is debit P&L and credit drawings on the balance sheet. Hope that helps!
  • olioli Feels At Home Registered Posts: 88
    I agree with Becky thats how I do it where I work as well
  • snezsnez New Member Registered Posts: 5
    Drawings - of course. Thank-you :-)
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