I have set up a partnership and both me and my co owner have introduced capital into the partnership bank account to get things going.

We have also incurred personal expenses for various items required to run the business which we would now like to claim back along with the VAT.

Previous forums appear to deal with Ltd companies and I would be grateful if you could provide some advice as to how these items should be posted under a partnership.

Many Thanks

Hi Mark,

For the initial injection of capital, record a General Transaction from the 'Owners Capital' account to the 'Cheque Account'.

For business expenses paid from your personal funds, create a Money Paid Out transaction paid from the 'Owners Drawings and Personal Use' account and allocated to the appropriate expense account. (If these expenses occurred in a previous VAT period you will need to manually increase the Box 4 figure on your next return).

When you withdraw funds from the partnership record a General Transaction from the Cheque Account to the 'Owners Drawings and Personal Use' account.

Regards

Thanks Mark for taking time to respond.