The views expressed in this post are my own personal (HRA protected) views, and are not representative of any organisation I have any involvement with.
Yes Chris I hope it really is that simple, cos thats what I have been doing. Credit directors loan, debit whatever account they have paid. On VT I think the best way is to set up directors loan as a bank account then just post the payment to this.
Yes, this is correct, it is the directors loan account.
The DLR is often cleared by dividends from the business, if there are any dividends to take, obviously there are taxes involved as well.
It does not look good on the accounts to have a credit in the DLA so it best to advise keeping business and personal expenses seperate. Although saying that, advise is all you can do, my client insists on using his business card for everything and beleives a lot of things are business expenses when they are not, it's up to me to keep the two seperate.
This gave me a headache in the beginning as I was not used to personal items going through the business account but its ok now I've got used to it. I do feel somethimes though that I am his personal secretary rather than businness bookkeeper!
Gerry
-- Edited by gerry on Sunday 15th of November 2009 12:48:16 PM
I know where your coming from Gerry, my client has it all very confused. He is the director of this and another company. He's actually paid many invoices for this one with the credit card for the other.
The views expressed in this post are my own personal (HRA protected) views, and are not representative of any organisation I have any involvement with.
The views expressed in this post are my own personal (HRA protected) views, and are not representative of any organisation I have any involvement with.
