I have been going round and round in circles. I have tried everything on the help questions, I have done it on paper and still can not get this right .
Director loaned the company 10000 as start up costs
have expenses come out of the bank account which is 0 at the moment of 6963.09 so assuming some of the loan went to the bank.
then the director has paid for stuff out of his visa and cash flow account and wants to take it off the directors loan of 1637.22 and off the P&L as expenses
would expect to see loan reduced .
I always end up with unbalanced transactions
I did try and credit loan debit bank by the 6963.09
then take the 6963.09 out of the bank against expenses
then I got stuck debiting the expenses and the loan.
or do I put the 10000 to bank (as it would of gone through there) and then take whats left after the 6963.09 has come out and put it to directors loan. or do I not bother with bank account at all.Can a loan account be made up of 2 accounts? one for bank account (sic) and one for balance of loan.
Setup a directors loan account as a liability account
Receive 10,000 in bank account using the directors loan account
Create an expense payer
Create an expense claim
Enter a journal entry to clear the expense claim as explained in the guide expense claim
@Wornout, you need to treat (post) each transaction as being independent.
Once you try and blur this transaction with this transaction you will end up in mess.