Hello there, but of a conundrum here ... How do we best account for purchase of foreign currency on directors credits cards please ? ie director goes on a foreign trip , buys currency at a forex bureau (US$, € etc) collects cash receipts for items in local currency . So how do we reconcile a) the initial purchase in UK £ of the sum purchase and b0 cash receipts obtained ?
Hi Jonathan,
I think the simplest approach record an injection of funds into the business at the point the director buys the items (not at the point that the director buys foreign currency). Just record a Money Paid Out transaction allocated to an appropriate expense account, and set the Paid From Account to 'Directors Loan Account'. Then Amount Paid should be in UK pounds using the appropriate exchange rate.
Regards,
