How do I pay salary and Directors Loan Account

1

I need to pay back what I owe on the DLA account and I need to pay myself my salary for the month.

To make the figures easy - assume £100 is the salary for that month and and £50 goes to pay DLA and bring that to zero and remaining £50 of my salary goes to pay me money as in bank spend.

Do I do bank spend £50 employee clearing account and then do journal entry and credit DLA and debit employee clearing account?

1 Like
2

  1. Create Payslip.

  2. Spend Money → 1st line = Employee Clearing Account which is your salary 100
    2nd line = DLA Account -50

So Overall spend Money will be 50 which you paid your salary 100 and deducted by your liability which is 50.

3 Likes
3

Thank you. That works really well. Never thought of doing that! It cleared both the DLA and the Employee Clearing Account. Brilliant.

4

Create payslip is optional, alternatively just do (2) from above with:
Spend Money → 1st line = Salary 100, 2nd line = DLA Account -50 (note the minus sign)

5

Its fine. I have already setup the employee clearing account etc. All sorted now! :grinning: