At present I am doing Level 2 Computerised Sage Accounts. I completed Level 1 last year and was taught when introducing Capital into the company i do it using Bank Receipt, nominal code 3000, 1230 for cash and 1200 for Bank Account.
My tutor for Level 2 is now telling me that I must use a journal for doing this. Is this correct?? I thought I only had to use the journal when entering wages..... so confused :((
You can use either method. Personally I would journal, as it is the more coventional way to enter capital. It is also ggod practice to get used to debiting and crediting directly into nominal accounts
Like most things bookkeeping, there is usually more than one way to get the same result.
Journals are used for a lot, particularly at year end when various adjustments need to be made.
As your level 2 tutor is saying use journals, it is probably best to, as it may be the way capital introduced is assessed in an exam
Thank you do much for your reply. I will get myself into the swing of introducing in as a journal entry. Would hate to get it wrong on the exam.
Just need to master the technique now.
Thanks again,
Eileen
