Invoice payment done by the director - private bank account

Accounting
1

Dear all… Just an accounting question for the more experienced users…
I have an invoice for the company. The director has made the payment using his private account.
I need to book 2 transactions basically…

  1. At the date when the invoice is paid by the director I would book the debt of the company towards the director
  2. At the date when the company reimburse the director I would book the transaction to close the debt with the bank exit…
    How do I do that in the QuickFile application?
    Thanks a lot for your help!
2

You can record this using the Directors’ Loan Account (DLA).

At the point the invoice was paid, simply enter a payment and lodge it as paid from the DLA. This creates a liability for the company.

Now when the Director is reimbursed, assuming this was a bank transfer from the company to the Director’s personal account, you would just tag the money out from the company as a bank transfer to the DLA.

The second transfer will NET off the original debit on the DLA.

Hope that makes sense, but please let me know if there’s anything you’d like me to clarify.

3

How do I tag the money out from the company as a bank transfer to the DLA?

I guess this has nothing to do with a Shareholder Loan Agreement which I might have as well right?

Thanks a lot!

4

You would tag this from the bank statement view as follows:

813×432 387 KB

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5

Thanks a lot!
Last point… How do I book a Shareholder Loan Agreement?
Let’s say there is a bank transfer of 10.000 GBP into the company due to a Shareholder Loan Agreement.

6

This may depend on the agreement, so I would check with your accountant.

In simple terms you can use virtual bank accounts (under the loan category) to track money loaned to/from the business, you then just tag the movements as bank transfers as per the above, that’s essentially what the DLA does. It will show up on your balance sheet as an asset/liability.

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