How do I pay salary and Directors Loan Account

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
  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

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

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)

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