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


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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
 
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