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Hi sir
Hope all is well.My questions are:
1. How do I account for a personal asset that has been used in the business?
2. How do I account for an asset purchased for the business but paid with my personal funds, and most likely I won’t get that money back because assumed I am the director?
Thank you in advance.
1. We would debit the asset account and credit a loan account (assuming it was a limited company. If a sole trader then we would credit capital.)
2. The same entry as (1). Being a director certainly does not mean that you will not get the money back!!
However neither of these are relevant for the Paper FA exam.
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