Journal payroll to DLA

[burnett]

I’m looking for a correct way to journal payroll and salary payment that went to DLA first (on day of payroll), and then from DLA to personal account.

Is the below correct? I’ve based it on knowledge base article but not sure:

(1201) Director’s Loan Account CR £9100.00
(2220) Net Wages DB £9100.00
(2220) Net Wages CR £9100.00
(7001) Directors Salaries DB £9100.00

And when I want to transfer out of company current account to personal current account

(1200) Current Account CR £9100.00
(1201) Director Loan DB £9100.00

Is this correct?

[ian_roberts]

That will give the correct answer, assuming there’s no income tax or NI involved, but you could shortcut it and not use the DLA at all - just debit director salary and credit net wages (2220) on the payroll date, then debit net wages and credit current account (1200 - i.e. tag the payment transaction as something else not on the list) on the date of payment.