I have bought some capital items for my business but due to cashflow I have paid for these personally. how do I record the purchases and take the payment for them from the business account when the cashflow allows this? do I use the directors loan account to record the purchases and then take a payment out of the loan account when the cashflow allows it?
Hi David,
Assuming you are the director of the company - yes, record the purchase in the usual way but set the Paid From Account to 'Directors Loan Account'. When the company reimburses you, create a General Transaction from the Cheque Account to the Directors Loan Account.
