Hi,

I'm a new member here. If this question does not belongs here. Please correct me. Thanks.

I'm seeking your kind assistance to help me on this accounting technical matter. I just got an book keeping job with a sole-proprietor company. It is a new company. My problem is, though I have studied account subject but do not have practical experience and this is my first book keeping job. I would like to know if the boss came out RM1000 to open a bank account for the company. What is the accounting treatment for this transaction ? Is it

DEBIT Bank Account CREDIT Capital Account

OR

DEBIT Bank Account CREDIT Sole Proprietor Account ( as this money was advanced from proprietor herself )

Then where and how to determine the Capital ?

Thanks so....... much for those helping.

Credit the capital a/c if ur owner doesnt claim back this money
credit the drawing a/c if he claim back later

if the company wanted to repayment than treat it like a loan Cr Loan from proprietor

if not treat it like capital, no future repayment ,

hi

i wanna just ask.what accounting year for sole proprietor which start in may 2005

fren, i hope u dun take it too personally, but dun u think that if u r unable to decide the question urself, u should actually deny accepting the accounting job.

If u dun haf the experience, then i suggest u apply to work for an accounting firm to obtain the necessary knowledge before u attempt to do a set of accounts for the client.

That particular transaction is just one of many more transactions to perform for the accounts and some are even more complex than that.
It would be detrimental to ur reputation to accept the work and subsequently unable to deliver or worse still to deliver a substandard work for the owner and thus risking penalties from wrongly declaration of account.

thank you for your reply.

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Added on November 18, 2008, 10:30 am


raven_cheah , thanks yah ....

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Added on November 18, 2008, 10:38 am

newmalaysia, you're right , but the problem is I've applied with several accounting firm for a junior position but to no avail and this position with the proprietorship came in, so , I just take it as I believe I can catch up if I willing to learn. It has been 4 months working with this company and so far I'm happy with the job , my friends with accounting experience and my boss's tax agent staff have been very helpful in assisting me if I sometimes face problem on accounting treatement. I really thankful to them and also apppreciate for those replying to this post of mine. once again , thank you all . Appreciate it.

Most importantly " Thank you , Mr. Chan " ( my boss ) for giving me the chance to work as your accounts clerk even I do not have accounting experience.

may i know ur qualification?