UK Directors loan or cash sales


Joined
Nov 23, 2017
Messages
71
Reaction score
0
Country
United Kingdom
If instead of putting cash from cash sales into a business bank account, the director transfers an amount of money equivalent to the cash sales from his own personal bank account into the business bank account, would this bank transfer be recorded in the business accounts as cash sales or would it be recorded as an increase of directors loan, or could it be either?
 
Ad

Advertisements

Joined
Nov 5, 2019
Messages
3
Reaction score
0
Country
Ireland
If you can prove the cash sales with invoices and back it up with an audit trail of where the cash came from (eg Customer>Director>Company) then it should be fine. It shouldn't have anything to do with a Directors Loan.
 
Joined
Dec 29, 2016
Messages
8
Reaction score
0
Country
United Kingdom
If instead of putting cash from cash sales into a business bank account, the director transfers an amount of money equivalent to the cash sales from his own personal bank account into the business bank account, would this bank transfer be recorded in the business accounts as cash sales or would it be recorded as an increase of directors loan, or could it be either?
Where are payments from customers deposited to? Why would the director transfer money equivalent to sales? Director and the company are 2 different people.
 
Ad

Advertisements


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top