company invoices from director - Accounts Payable

[Finance (Marc)]

Ah; thank you, Donald!

So, to confirm, the two "halves" of the equation are "Loan from so-and-so" and the relaxant Expense account?

It's all clear when you know how!
– Marc.


On 30 Jul 2017, 18:34 +0100, doncram <doncram at gmail.com>, wrote:
> For the accounts of the company, I think an account name like "Liability:Loan from Marc Johansson" would be fine.   If you paid for an expense and put some money into the company's checking account the entries would be like:
> 
> Utilities expense                           35.00
>         Loan from Marc Johansson              35.00
> Bank of Scotland checking       200.00
>         Loan from Marc Johansson             200.00
> 
> 
> If you later "donated" the money you had put in, then you'd record the donation as:
> 
> Loan from Marc Johansson     235.00
>           Equity                                                 235.00
> 
> Or maybe you'd use a more specific equity account like "Equity-Marc Johansson".  Hope this helps.
> --Donald Cram
> 
> On Sun, Jul 30, 2017 at 12:29 PM, Finance (Marc) <finance at maxm.xyz <mailto:finance at maxm.xyz>> wrote:
> Good afternoon,
> I have what is really an accounting question, but I can’t find the answers in my book-keeping textbooks (probably due to still being very much a neophyte).
> 
> I have formed a private limited company here in Scotland, but shelled out some money on my personal credit cards for it before it was actually incorporated.  In the accounts, I am trying to work out how to best record money I have shelled out until such time as it can maybe pay it back (or write it off as a donation from director).
> 
> In my accounts structure I have various ‘Liabilities’ accounts, but I also have Accounts Payable.  My question is: for each invoice I’ve raised from me to the company, should I post these under Accounts Payable (with a corresponding cross-post to Equity - Opening Balances, because we’re waiting on the bank account), or should I be chucking them under an insecure liabilities account?
> 
> Can someone advise me on the practicalities:  what are the two accounts for these types of transactions?  I understand double-entry accounting; I just can’t seem to work out what the right mix is for these…
> 
> Thank you,
> Marc Johanssón.