[webERP-users] Handling Asset purchased by company director with his own money

[Arwan <r1g...@gm...>]

Hi,

I would like to confirm or get a better solution for a situation where  a
director goes and purchases an asset for the company and pays with their own
money.

In the chart of accounts, there is a liability account* 2430 LOANS FROM
DIRECTORS*
this account is used to book transactions where  directors spend there own
money on behalf of the company. So the amount a director spends reflects as
a loan from the director.

There is a supplier named *GENERAL* that is used to book transactions with
different suppliers who are not needed to be created as individual suppliers
as they are only one-time suppliers.

For a situation where a director has gone and purchased a car for the
company and paid with their own money, this is how am handling it now:

1.   go to *MAIN-MENU → ASSET MANAGER  → ADD A NEW ASSET* and enter the
purchased cars details

2. go to *MAIN-MENU → PAYABLES → SELECT SUPPLIER → ENTER SUPPLIER INVOICE*
and click on the *FIXED ASSET* button, select the car from dropdown list and
enter the cost then *BACK TO INVOICE ENTRY*, then complete the invoice entry
for the supplier named *GENERAL*.

3.  go to  *MAIN-MENU → GENERAL LEDGER → JOURNAL ENTRY* and enter the
following journal for the cost of the car.

DEBIT    –  A/c 2100 ACCOUNTS PAYABLE 
CREDIT –  A/c 2430 LOANS FROM DIRECTORS

4. go to  *MAIN-MENU → PAYABLES → SELECT SUPPLIER → ENTER A SUPPLIERS CREDIT
NOTE* for the supplier named *GENERAL* for the cost of the car. This is to
remove the cost of the car from that supplier.

Is this a correct way to do it ? Is there a better way ?

Thanks in advance.

Arwan



-----
WebTech Resources
Nairobi Kenya
+254 724659244
Email  :in...@we...  
WEB  :weberp.co.ke

--
View this message in context: http://weberp-accounting.1478800.n4.nabble.com/Handling-Asset-purchased-by-company-director-with-his-own-money-tp4658508.html
Sent from the web-ERP-users mailing list archive at Nabble.com.