Richard Jones wrote I wonder if you can help. ... how to treat expenses such as professional fees, decorating etc that have been incurred pre-opening and which have been paid for out of start up capital. If I show the start up capital as the capital employed how do i show these 'expenses'in the top half of teh balance sheet. I hope you can help me Reagrds RJ I replied as follows: If I understand the problem correctly, we have a business that has, say £10,000 capital invested in pre incorporation expenses incurred: professional fees (assume £200), decorating (assume £150)... paid out of the £10,000 If that is correct then do the following: Debit Cash/Bank a/c £10,000 Credit Capital a/c £10,000 Debit Professional Fees £200 Credit Cash/Bank a/c £200 Debit Property Repairs a/c £150 Credit Cash/Bank a/c £150 On the other hand, if you mean: a business that has, say, £10,000 capital invested in pre incorporation expenses incurred: professional fees (assume £200), decorating (assume £150) ... paid out in addition to the capital investment of £10,000 Debit Cash/Bank a/c £10,000 Credit Capital a/c £10,000 Debit Professional Fees £200 Credit Capital a/c £200 Debit Property Repairs a/c £150 Credit Capital a/c £150 Let me know if you think the CPU problem has inflicted my own internal CPU but I think this is what you mean. Best wishes DW