How to account for private purchase

Hi @CAL

If I’ve understood correctly, you’ve bought something on behalf of the company, but paid using your personal credit/debit card - is that correct?

If this is the case, you can just raise a purchase invoice as per usual for the purchase, and mark it as paid from the Director’s Loan Account (DLA).

This will show the DLA as overdrawn which means the company owes you money, so you will need to pay it back eventually (from the company to your bank account), which is then tagged as a bank transfer to the DLA.

Think of the DLA as your own personal bank account in relation to the business.

There’s a more detailed guide on the DLA as part of this article:
http://community.quickfile.co.uk/t/limited-company-bookkeeping-the-basics/8809#2

Hope that helps?