Simple Double Entry Question

snez

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.

Becky V

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!

oli

I agree with Becky thats how I do it where I work as well

snez

Drawings - of course. Thank-you :-)