If I have transferred my own funds into the company (in the early days) and want to mark this as a loan to the company, how do I do this in my accounting tool?
E.g.
Transfered 100 GBP from Myself to Company Limited 13 times.
If I have transferred my own funds into the company (in the early days) and want to mark this as a loan to the company, how do I do this in my accounting tool?
E.g.
Transfered 100 GBP from Myself to Company Limited 13 times.
When I started the company it needed funds /money.
Eider I go to the bank and take out a loan under the company or I lend out money from myself to the company.
Now when I am doing the bookkeeping I see all of these transactions from myself to the company bank account. Its not revenue (..)
When I started the company it needed funds /money. Eider I go to the bank and take out a loan under the company or I lend out money from myself to the company.
Now when I am doing the bookkeeping I see all of these transactions from myself to the company bank account. Its not revenue (..)
Date of business start?
' to the bank and take out a loan under the company ' NOT a private loan.
Maybe you should not be doing the bookkeeping if you dont know what you are doing?
HMRC are interested in when the company loans money to you but not the other way around.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
c'mon. It was a simple enough question and I think that it was a legit one for someone who hasn't encountered this sort of thing before.
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Dear No. You are correct. I am not the best person to do the books. It's not my occupation.
But, I am interested to learn how it's done if I one day wish to support my accountant in marking the transaction inside my accounting software.
Nothing more than that (..) Shamus and No, thank you both for your time.
based on what you say it is a loan from you to the company which you expect the company will repay to you at a future date. If you expect to be paid interest on that loan then that is another facet that needs covering separately.
It sits on the company's balance sheet as a creditor (money the company owes to someone else) until such time as it is repaid. Obviously, the other side of the double entry is money into the company bank account
as mentioned above, you need to read up on "Director loan account" ("DLA") as that will show you how to enter it. If your accounting tool is worth having, then it should already have the functionality to deal with a DLA.
-- Edited by John the booky on Saturday 5th of November 2022 11:03:07 PM
Thank you John for the details. Really appreciate it!
I have gone ahead and recorded every transaction that came from me and that was paid into the company account before the company started generating money of its own.
Around 30 transactions and 9,082.25 GBP in total.
I have added it under 2301 Directors Loan Accounts (Director 1): Closing balance -9,082.25.
So, is If understand this correctly, I now pay out the exact amount to me and debit it so the total amount in 2301 = 0 GBP.
