If there is no payment made to the director for them mileage claim then there is no need for a bank entry to be made. All you need to do is Dr Motor Expenses (73**) and Cr Directors Loan Account. So this will record the reduction in the driectors loan and also charge the business for mileage used.
Edit: Typing this whilst Robert Pearce was posting to forum
Mark
-- Edited by Marky65 on Wednesday 27th of June 2012 12:13:38 PM
I'm trying to input mileage claims to my directors loan account. The company bought a car for him, and I add the fuel receipts onto the loan account, and am supposed to enter his milage claims to reduce to loan amount. I have tried to enter a journal entry on the practice data, but I assume I need to also enter a bank payment to make them balance, however no actual payment is made, it's just written off against the debt. How do I go about doing this, I've looked in the financials and in previous months (previous bookkeeper) the milage expenses are clearly JC, and no corresponding JD in the bank account. How can I record these mileage claims as writing off the directors loan?
