I have started doing the books for a new company and there are a few cash payments that have come out of the directors personal funds. I have been told to credit them against the Directors Loan account as they will be reclaimed at the end of the year.
Does anyone know how I do this in Sage? Do I just do a journal?
There are a number of ways that you could post them:
(1) As you suggested, you could do a journal entry.
(2) You could set the director up as a supplier on Sage, post the transactions as purchase invoices (which could be handy if there's VAT to be reclaimed on any of the receipts), and then post a dummy sales credit to clear the supplier account, crediting the director's loan account.
(3) Some people set up the director's loan account as a bank account on Sage. If this was the case, you would post them as 'bank' payments.
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Pearce & Co - Chartered Accountant and Chartered Tax Adviser
