If I pay cash or debit card for a business expense (fuel) how do I treat that as it is a private loan?
You would process the payment from the Proprietors Drawings Account 1202 and tag it to
Something else not on this list
When the business pays you back, you would do a transfer from the business bank to the Proprietors Drawings Account to clear the balance.
Hi thanks. But what if it’s not going to be replayed ie. Permanent loan
If it is not to be paid back it would not be classed as a loan.
If you wanted to clear the balance on 1202 you could record a money in transaction from Capital Introduced for Sole Traders (3300)
This would show as you putting money into the business
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