Hi, I need to transfer an amount of money from the Directors Loan to Gross Salaries in Sage do I just do one journal to the gross salary nominal and one from directors loan?
hi not sure I totally understand what you are trying to do, it it the paid a mount you want to transfer? In which case it goes to net pay not gross.
If you are doing a salary journal then you credit directors gross usually 7001 And debit net pay, Obviously also journaling the NI & paye also if it applies....and it usually does. Sorry if this not the answer you are looking for.
Basically I was told by my client that the £2500 a month paid to him out of the bank account was to be coded to Directors Loan account as dividend payment. However he now wants a proportion of it to be coded to the directors salary as some of it is actually wages. Just wondering what is the best way to transfer the last years worth of salary from the directors loan ledger on Sage.
You will have to find out how much of this is actually salary and make the postings accordingly. There will be tax and ni to account for though as well, which he should have paid over to HMRC if this is his salary. Has he not paid any for a whole year? Is he actually on the payroll?
Hi Pauline it is £644 a month so no PAYE or NI to account for, the accountant does the payroll. I need to discuss it with him I think. But going back to the journals is what I suggested what I need to do?
If you have paid £644 out of the bank and posted it to directors loan, as a debit, you will need to post the journal £644 credit directors account, debit directors salaries.
If no bank payment has been made, the journal will be the same.
If you have posted a bank payment to directors wages, you dont need to do anything.
