Hi, We are a partnership, just started to use Quickfile and so far very impressed. We do however have a question that I wonder if someone could help us with.
Occasionally we make cash purchases from our own pocket to buy business related materials. I guess it would make sense to put these through the business but we have not taken any specific money from the business bank account to cover them. Should they be entered under purchases and paid for by directors loan ? Can we then offset them from our drawings ? If anyone can help it would be very much appreciated.
With a partnership account, you should have a drawings account for each partner (a director’s loan account being for limited companies). In this case, you would do as you suggested and tag the purchases as paid from the drawings account, which in turn shows the business owes that partner that amount.
Hi Mathew, my question is similar. I have a limited company registered charity and I want to add cash purchases from personal bank account. But I cannot find the Director’s Loan Account. Can you assist?
