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Paypal - Verify Business Account - What to do with this in the books

  • 25 posts
  • # 55281

Hi,

I am trying to think of all the info I need for when I start up my business. 

Does anyone know what to do with the two small amounts of money put into a business bank account by Paypal to verify the account?

I know these are small amounts usually 1 to 20p but to get the books to balance and match the bank account i'd like to know what to do with it when the time comes.  I know it'll be to Debit the Bank account but what do I Credit?

I won't receive income from Paypal but will use it to buy items.  Paypal don't seem to take back the amount they give you and don't off set it against anything.

I can't imagine i'm the first person to ask this!

Thanks 

  • Fellow PM.Dip
  • Practice Licence
  • 258 posts
  • # 55283

Hi Loz,

As they are very immaterial amounts, I would think that you can just credit them into "Other" or "Miscellaneous" income, if you're using Sage that would be somewhere in the 4000 codes.

Hope that helps.

  • 180 posts
  • # 55328

You could treat it as credit of bank charges as well, you may well get paypal charges at some time.

Edited at 21 Mar 2011 11:24 AM GMT

  • 145 posts
  • # 55329

The amounts should go in and out of your accounts so I would just put them in suspense as they will cancel each other out within a short time.

  • 180 posts
  • # 55330

Liz.

No, they don't take it out again.

They use the sums, usually pence, to verify the bank account.

I presume they don't take it bck because they have so much money.

BTW - I can't read your posting on charities.

  • 145 posts
  • # 55331




Geoff
said:

“Liz.

No, they don't take it out again.

They use the sums, usually pence, to verify the bank account.

I presume they don't take it bck because they have so much money.



Then post it to Miscellaneous as previously mentioned.



BTW - I can't read your posting on charities.”


That's odd!  I'll try to post it as a .pdf file.

  • 25 posts
  • # 55335

Lady M said:

“Hi Loz,

As they are very immaterial amounts, I would think that you can just credit them into "Other" or "Miscellaneous" income, if you're using Sage that would be somewhere in the 4000 codes.

Hope that helps.”

Thank you!

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