am fairly new to accounting but have a question. If I want to log receipts for payments a director has made on his personal credit card, would I make a separate nominal code for c/card, or log each item under the relevant dept, ie office supplies? I know I need to add the credit card as a separate bank account in order to refund the monies but unsure as to how to log the receipts
For payments made personally (via cash or personal credit card) I usually post these through a Bank account called 'Directors Bank Account'. Key them as a 'payment' rather than 'pay supplier' but use the relevant nominal code eg stationery etc. Then perhaps once a month clear the Director's account to the Directors loan account via a journal. Its a good way to show the Director how much he has been spending monthly this way as well as an easy way to process the transactions without loads of journals.
Hope this helps
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Thanks for the answer I was just about to ask a very similar question about how to log business expenses paid from personal money in QB. Will set up the Dir bank account
