Sometimes the owner of a business agrees that a percentage of
certain expenses may be charged to him. This is usually when the owner uses the
telephone or motor vehicle for business and private use. During the course of
the financial year or accounting period, the expenses will be debited to the
expense accounts in the normal manner. At the end of the financial year, the
particular expenses will be calculated according to the agreed formula and the
owners, portion will be debited to the drawings account and the expense account
will be credited.
Identify the Account, Calculate, Enter the Private Expenses and Post it to the Ledger:
For example, the pre-adjustment trial balance reflects petrol
expenses of R(£) 5 000. It has been agreed with the owner that 20% of petrol
expenses is private and 80% is for business. At the end of the year, (on 28/29
February), the 20% private expenses of the 20% of the petrol expenses needs to
be calculated and must be disallow it to the Drawings account.
Enter the transaction in the General Journal. Press the
key on your keyboard or click on the 
speed button or icon. The Batch Type selection screen
will be displayed.
Select the General journal Batch Type and click on the 
button. The General journal Batch Entry screen will be displayed. If the correct
contra account for the batch was not displayed on the Batch Type selection
screen, press the 
key on your keyboard or click on the 
speed button or icon to set the options for this batch.
Note that it is recommended that the Amount Entry field be set to allow both
(debit and credit).
Enter the transaction in the batch. After entering the
transactions in the general journal, the transactions is as follows:
Click on the 
speed button or icon or press the
key on your keyboard. Select the change the alias option.
Click on the 
speed button or icon or press the 
key on your
keyboard to post the transactions to the ledger. After posting the transactions
to the ledger, the entries should reflect as follows in the ledger.
The actual amount of the particular expense account on the pre-adjustment trail balance, less the amount of the calculated private expenses. The expenses are decreased (credited) and drawings account is increased (debited).
Identify the Account, Calculate, Enter the Private Expenses and Post it to the Ledger:
For example, the pre-adjustment trial balance reflects petrol
expenses of R(£) 5 000. It has been agreed with the owner that 20% of petrol
expenses is private and 80% is for business. At the end of the year, (on 28/29
February), the 20% private expenses of the 20% of the petrol expenses needs to
be calculated and must be disallow it to the Drawings account. Enter the transaction in the General Journal. Press the
key on your keyboard or click on the
speed button or icon. The Batch Type selection screen
will be displayed. Select the General journal Batch Type and click on the button. The General journal Batch Entry screen will be displayed. If the correct
contra account for the batch was not displayed on the Batch Type selection
screen, press the key on your keyboard or click on the
speed button or icon to set the options for this batch.
Note that it is recommended that the Amount Entry field be set to allow both
(debit and credit).Enter the transaction in the batch. After entering the
transactions in the general journal, the transactions is as follows:
Click on the speed button or icon or press the
key on your keyboard. Select the change the alias option.Click on the
speed button or icon or press the key on your
keyboard to post the transactions to the ledger. After posting the transactions
to the ledger, the entries should reflect as follows in the ledger.
The actual amount of the particular expense account on the pre-adjustment trail balance, less the amount of the calculated private expenses. The expenses are decreased (credited) and drawings account is increased (debited).
