Lesson 3 of 4 · 2 min

Expenses, with the receipt

Rent, electricity, fuel, tea: paid on the spot from cash, bank or a wallet, with the receipt's photo kept on it.

  1. Purchases → Expenses → Record an expense

    For anything paid there and then, Purchases → Expenses → Record an expense: What for (the account), Paid from (cash, bank or wallet), the Amount, who was paid, and the Receipt: a photo or PDF, up to 4MB each.
  2. It posts straight away: the fuel account goes up by the cost, and your cash comes down by the same. It's in this month's profit and loss as a cost.
  3. A receipt with sales tax on it? Pick its Tax rate: with Includes tax on (as it starts), the amount is the receipt's total and Ledger takes the tax out of it. Whether you can claim that tax back is a question for your accountant: if you can't, pick No tax and the whole amount is the cost.
  4. Paying later instead? That's a bill, which waits in what you owe until you record its payment. And when Ayesha takes money out for herself, it isn't an expense at all: whoever keeps the books posts a journal (Accounts → Journals), Owner's drawings against the bank, so the bank goes down but the profit doesn't.

Try it

Opens Ledger. You'll be asked to sign in first; new businesses get a free week, no card needed.

Record an expense

Quick check

2 quick questions. Pick an answer and Leo will tell you how you did.

1. You pay the godown's rent from the bank today. Is that a bill or an expense?
2. Ayesha takes Rs 50,000 out of the business for home. How do you record it?

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