How do i record purchases which I made with my own money after start up which i would like to be refunded when the business can pay me back? How far back can you include purchases made with personal funds for a business and how do i tag these. I am in my first accounting year.
The following section should set you on the right track (It’s worth reading the whole guide):
Limited Company Bookkeeping - Recording Out of Pocket Expenses
Hi,
I have the same issue but cannot find appropriate article that explains - the link above is broken.
Could you advise?
I’m a complete newbie, so if you could speak super-simple language (“shows in red on …”) that would be much appreciated.
Do you have any videos on recording out of pocket expenses on Director’s Loan? I’m also struggling with recording initial Share Capital - I’m not sure where to find journal entry to add this info.
Thank you.
Thank you!
Hi @Newbee_acc
Apologies for the broken link above - as you can appreciate, some things have changed since my colleague posted in 2014. I have however updated the link to the current guide.
Basically, with an expense paid by the director, you would tag it as paid from the Director’s Loan Account. There are several ways of doing this. However, the guide takes you through the and also the share capital journal.
I hope this helps, but please let me know if you need further assistance.