I'm building a house and using Wave to account for costs etc as I intend to rent it out. I'm not quite sure how to enter money I am feeding into the business to pay for materials etc. Any help would be appreciated.
If you allowing Wave to feed from your bank account then categorize deposit as owners equity/or contribution. If you are manually entering then debit cash (amount deposited in bank) and credit owners equity/or contribution.
Thanks Mike. I'm entering them manually but I'm far from expert in Wave! Would you mind talking me through the debit and credit stages please?
Sure. I'm available at 443-851-4054 if you have any specific questions
Sorry, I meant WALK me through . I'm in the UK!
No problem. I'm a US tax expert not UK. You may might to locate one of the UK experts here on the community such as Merlin. But if your laws are similar to the US with regards to self constructed assets. Then, debit asset- building and credit owners equity. Here is the US, in short, building is anything that is permanently affixed to land or part thereof. So examples, actual physical structure, drywall, plumbing etc. The purchase of appliances and such would be a debit to the asset Appliances and credit owners equity. Let's run a quick example. I pay a builder 40k to build the structure. I purchase 2k in drywall materials and do the plumbing and electrical myself costing 5k at the local home improvement store. I also purchase some appliances for 1.5k. All of this was paid from my personal funds.
Debit Building 47,000
Debit Appliances 1500
Credit owners equity 48500
I've been dealing with all my purchases, but I don't understand how to credit owners equity.
If you are depositing cash then paying for materials with business account. You would debit Cash business and credit owners equity. If you are paying for materials personally then debit the asset as described above and credit owners equity. This is done under Accounting/Transaction/More/Journal Transaction
Thanks Mike. That's a lot clearer for me and I'll have a go!