Hi all, I'm in the process of transferring my little sole trading business from a spreadsheet to some software from MYOB called Firstedge, and need a little guidance. Is raw stock purchased to make items for sale best entered under the "Assets" or "Cost Of Sales" header? Before starting up, I bought some equipment with my own funds, am I right in entering these as:- DR Fixed Assets>Machinery & CR Capital>Capital Introduced? And then when the funds are available to repay me:- DR Capital>Capital Introduced & CR Expense>Owners Drawings? (I'm a little unsure of this one). The rest sort of makes sense and i have set up a dummy company for experimenting and self-teaching which is proving really useful. Please do not be offended if i say do not recommend KashFlow as i have already discussed that option. Firstedge is a good price and runs on a Mac, plus it stores the data locally. Both of these are very important to me. Thanks in advance Dave Kearley
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A little bit more info, i have tried a few options but none seem to work right, let me explain... I bought some equipment and stock before i started as a sole trader, about ?000 worth from my own funds. I then registered and began making and selling stuff. I want to record the transfer of equipment and stock etc into the trading business' books and i want to allocate funds as and when possible to reduce this "loan". I believe this is quite normal practice, i'm just not sure of what header accounts it all goes under and which way (CR/DR) the IN and OUT transactions go for the investment and repayments. I expect to be repaid within a year so it seems a "Directors Loan" account under liabilities would be better than capital invested? Any help is much appreciated Dave
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Hi Dave
If you run a Ltd Co, you can have a directors loan account. If you are a sole trader, you are looking at capital invested.
Either way, its DR Asset or Expense accounts, and CR Capital or Directors loan.

The repayments are CR bank and DR loan/ capital.
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Dave, can I just check, are you still a sole trader? If so, directors loan is not appropriate.
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Hi, my apologies, not director but "Owner" or proprietor i suppose. Yes, its very much a sole trader home business. Capital invested sounds ok, if thats where it goes, then thats where it goes :) Dave
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Jolly good. You can't loan money to yourself, see ;) :D
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Hi, thanks all, I think i've got it going now, my initial problems were caused by mixing up the CR/DR transactions so it was backwards. It looks much better now! Dave
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