Good afternoon
I want to record directors salary into Solar, would you please tell me which way is more correct
1 - New transaction from bank account paid to directors salary expense account
2 - New transaction from bank account paid to Directors Loan account then another transaction paid out from Directors Loan account to Directors Salary expense account
Oh would you please tell me how to record directors dividend as well
Thank you for your help
HB
Hello Hang,
If you want to salary payment as being made before the money comes out of the company then you will need to record two separate transactions as described in (2). However, if the dates of the transactions are the same I cannot see why you would need two transactions - in this case just record the payment as in (1).
Regards,
Sorry that should read "If you want to record the salary payment..."