Apologies, my questions always seem to be about the Directors Loan Account (for my Limited Company), which I find very confusing!!
An earlier question I asked related to repayment of annual mileage allowance, and I’m very happy with the answer I was given of using a dummy invoice, but I’m not sure if that applies to a basic repayment of the DLA (which is money owed from initial capital and expenses that have accrued). I have tried the following (the cash is currently in the savings account, so first step shows it being moved to current account):
Savings account > Money Out (tagged to Current account)
Current account > Money Out (tagged to Directors Loan account)
Directors Loan account > Money Out (tagged to ??)
I don’t know how how to tag this transaction as the cash is being transferred to a personal account. I’ve tried transfer between accounts, but my personal account isn’t listed, and when I tag to DLA the balance in that account is then wrong?
Am I on the right track but not tagging correctly, or is there an easier way such as using a dummy invoice?
Thanks in advance for any help with this?