The DLA entry is the other way around - i.e. ...CR DLA - so it shows up as a creditor on the TB, as the company owes the director for paying company debts from private funds.
So the journal would be:
Dr telephone Cr DLA
If the invoices in question are through the suppliers section, then there are a few ways of doing this but one of the simplest is to make a bank payment to suppliers - thus settling the invoices - and then doing a bank receipt to DLA. The double entry would be:
Dr suppliers Cr Bank account
and
Dr Bank account Cr DLA
As long as the amounts are the same, the bank payment and receipt will cancel out (which reflects the fact that no payment or receipt actually went through the bank account).
If this is going to be a regular thing, with the director paying miscellaneous bills, What i have done in a similar situation, is create a psuedo bank account in the 12xx range. Any payments the director makes is paid from this account. Then monthly/ quarterly/ yearly (whatever suits) I journal the "bank" balance to the DLA.
I just find it easier to keep track of what the director has paid for themselves.
Some days I'm just dull as ditch water and this is one of them (which is my excuse for getting th DR/Cr the wrong way round).
I can see the practical benefits of both methods but I shall plump for Nick's, thanks, simply so that I keep the assets and liabilities separate. And it will give me practice (much needed, obviously) in Journals!
