We recently started our own business, but before we had a business bank account we bought and paid for a logo and a domain and hosting from our personal bank account.
Obviously I need to put these invoices into the business software as a business expense, but am unsure how to show this as the cash left our personal bank account. It seems clear the business owes us money . . but from there on I'm stuck as to how to deal with this . . .
We are a limited Company - so . . If I were to set up a Directors Loan account in my business software and the amount the items cost were £50 for instance, how is this shown in the directors account opening balance and how do we get the money back? would that come from the business current account to our personal account but a journal raised to move the money from the directors account to the current account?
You would debit the relevant expense/asset accounts with the cost of the items purchased and credit the director's loan account. When you pay yourself back from the business bank account to your personal account you can do a transfer from the bank account to the director's loan account. (i.e. credit the bank and debit the dla).
