UK Journal entries for a Director of a Limited Company who paid rent for the business premises

Joined
Nov 23, 2017
Messages
74
Reaction score
0
Country
United Kingdom
If a Director of a Limited Company pays for something for the company's benefit (e.g. business premises rent of £5000) and claims the expense, should you use Accounts Payable or Creditors?

Is this the correct journal entry?

Date (01/01/2018) Debit Expense 5000
Credit Accounts Payable (Director) 5000

Date (01/01/2018) Debit Accounts Payable (Director) 5000
Credit Director's Loan 5000
 

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

Members online

No members online now.

Forum statistics

Threads
11,629
Messages
27,578
Members
21,387
Latest member
BoltonPlumbing

Latest Threads

Top