Can't find the capital account-please help!

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi. I'm currently studying for the AAT foundation stage and have brought the sage accountancy software.i've loaded sage on under the general business configuration.The problem is, i can't find a capital or drawing account, can anyone help me?

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Can't find the capital account-please help!

    I normally use the directors loan account but you can actually set your own nominal codes up if you go into nominal account and new code. You just need to make sure that you include the new code to include in the chart of accounts.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Can't find the capital account-please help!

    Hi<BR><BR>Thanks, but the loan account is not under the capital and reserves section (3000+), so wouldn't it affect your profit and loss account?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Can't find the capital account-please help!

    Directors loan is usually a short term or current creditor so is not a capital account. As you rightly say Bexjoyce, dir loan would come under net current assets/liabilities not capital and reserves. However as they are both balance sheet items they won't affect your profit and loss just the net assets.<BR><BR>Having said all this, the directors loan is really only applicable to a limited company so could be used as a capital account. I'm not sure where Sage would put it so I guess you need the Sage experts on here to respond.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Can't find the capital account-please help!

    I owed a limited company and was advised to either set up a new captial account using the nominal facility or directors loan would be ok.<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Can't find the capital account-please help!

    I would guess that setting up a capital account would be the least confusing as it would definitely be in the correct place. No chance of misinterpretation. <BR><BR>Unfortunately I know only the basics of Sage so cannot advise on how it places accounts but when I draft accounts, the directors loan is a current liability as it is technically repayable within 1 year. As I stated before, this is only for a limited company where capital introduced would be a directors loan. A director doesn't technically own the company as a sole trader does.<BR><BR>Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Can't find the capital account-please help!

    Thanks for your help annette and everyone, i think you are right , setting up a capital account would be the least confusing way given that the owner of the business i'm working for is a sole trader.<BR><BR>bex

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