Credit Card Journals

ereid
ereid Registered Posts: 28 Regular contributor ⭐
in General accounting discussion
Please can someone help/advise on the following

Client pays business expenses/suppliers via credit card and own bank.

The credit card is set up amongst the Sage bank accounts, including his personal one. I have transferred payments to date.

But it occurred to me that there should be a journal for the interest, charges and capital repayment element of the credit card debt itself.

My journal so far

DR interest charges
DR charges
DR capital element ?? if so which account please and then where does the CR go????

Hope you can help me finish my journal, thanks

Comments

  • stuartander
    stuartander Registered Posts: 82 Regular contributor ⭐
    ereid wrote: »
    Please can someone help/advise on the following

    Client pays business expenses/suppliers via credit card and own bank.

    The credit card is set up amongst the Sage bank accounts, including his personal one. I have transferred payments to date.

    But it occurred to me that there should be a journal for the interest, charges and capital repayment element of the credit card debt itself.

    My journal so far

    DR interest charges
    DR charges
    DR capital element ?? if so which account please and then where does the CR go????

    Hope you can help me finish my journal, thanks

    I would do a journal of

    For charges- not really a journal needed
    Dr interest/charges- expense account
    Cr credit card - sage bank ac

    For cap repayment
    Dr credit card- sage bank ac(to reduce bal)
    Cr bank ac - most probably current account

    Any other ideas anyone ???
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
    ereid wrote: »
    Please can someone help/advise on the following

    Client pays business expenses/suppliers via credit card and own bank.

    The credit card is set up amongst the Sage bank accounts, including his personal one. I have transferred payments to date.

    But it occurred to me that there should be a journal for the interest, charges and capital repayment element of the credit card debt itself.

    My journal so far

    DR interest charges
    DR charges
    DR capital element ?? if so which account please and then where does the CR go????

    Hope you can help me finish my journal, thanks

    I wouldn't do this as a journal.

    If his personal bank/ credit cards are set up as a bank account in Sage, I would just do a Bank>Payment to Interest etc.
  • stuartander
    stuartander Registered Posts: 82 Regular contributor ⭐
    Sorry my teaching streak wascoming through again;)- computerised accounting, yes best to do these as bank payments....definately no need to Journals

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