Suppose I pay with my credit card, £15 at a store, where £10 is for stationery used for my business meeting which is a claimable expense, and £5 is for my lunch which is a personal expense.
I think there are two ways to do this:
A. Use one journal entry:
1) Transaction Description: lunch and business stationery credit - £15 - Credit Card (Credit) debit - £10 - Business Expense (Asset) debit - £5 - Lunch (Expense)
B. Use two journal entry one for each purpose:
1) Transaction Description: business stationery credit - £10 - Credit Card (Credit) debit - £10 - Business Expense (Asset) 2) Transaction Description: lunch credit - £5 - Credit Card (Credit) debit - £5 - Lunch (Expense)
My feeling is that (A) is more useful for tracking against the credit statement, where as (B) is more useful for understanding the purpose (due to a nice separation of transaction purposes).
Is there a recommended best practice in these circumstances?
NB: Please note that I am an novice accountant. I am learning accounting from a non-pro book, and from attempting to do my own personal and business account. Apologies if my thinking or terminology is incorrect.