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D
DoRo
September 22, 2020
Question

Directors paying into business account from own account to then pay a supplier

  • September 22, 2020
  • 1 reply
  • 0 views

Hi,

 

I would just like to know what the entries would be for Money being paid from the Director into the business bank account from there personnel bank account.  To then pay a supplier from the business bank account (basically using the money the director has transferred into the business account)

 

I know the double entry would be DR Bank and CR DLA and then once you pay the supplier would you CR Bank and DR purchases (as no invoice from Supplier)

 

Hope you can help?

1 reply

Kristine Mae
Kristine Mae
September 22, 2020

You can record this as a journal entry as advised in the article below, Doro.

 

 

 

You could transfer funds from the director's bank account to the business account. If you have created an account for each bank account in the chart of accounts in QuickBooks. This process will move the money from one account to another. Next, since there's no invoice or bill from the supplier, you can either create a cheque or expense to add the transaction. Then, ensure to use the correct bank account to record it accurately. 

 

You could also record this as a directors loan to be paid back, as a liability to the business if this was a longer term loan for example and not equity put in the business.

 

You nay wish to discuss this with your accountant.

 

If you have additional questions, please feel free to reach out to us again. We're just one post away. 

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