Hi,
There are 3 directors that are loaning money to the company, to be used for a specific venture.
The money appears in the current account as a deposit.
I have created a DL account for this specific venture - as I want to keep a log of how much money is left and what it has paid for.
If a total of £3k has been loaned, should this appear in the DL account as -£3k or +3k?
Expenses are paid for using the current account.
When an expense is incurred, do I have to manually create a “money in” or “money out” in the DL account?
Hi @dipens
View the Director’s Loan account as if it was your own bank account; If you spend money on behalf of the business - it’s money out.
In the case of your £3,000 loan, if this is a loan from the director to the company, it would be a money out transaction on the DL account (because it’s leaving the director’s bank account), and a money in transaction in the current account (because the business is receiving the funds).
If you tag the transaction in the current account as a “transfer between accounts” and select the corresponding director’s loan account, QuickFile will create the matching transaction for you.
Hope that helps!
Thank you.
Ok, one more thing.
In the current account, I have an entry (for example):
Travel £10 (which includes 20% VAT)
Now, when I transfer this payment to the DL account, it comes in as money in (which is what I expect).
However, what do I need to do to inform quickfile that this is a vatable transaction?
You need to add a purchase receipt including the vat element.
Then create a money out transaction in the directors loan account and tag it to the purchase receipt.
That should allow you to claim the vat element back.
You will need to note that this account will only show a balance of the loan that is left in the account. You will need to work out a way to keep track of the payments and what they were for. Others can comment on how to do this.