In numerous occasions, I sent money from my personal account to my company’s business account; I then created director’s loan account under liabilities and assigned to it all these transactions. My friends also lent my company money by sending money directly to its business account; I then created friend’s loan account under liabilities and assigned to it their transactions. In order to return the money (loan) back to myself, I have used the company’s business account to purchase some personal items. I now have to pay my friends their loan back and I am planning to transfer money directly from the business account into their account.
Question: How I could assign these transactions?
Intro: I purchased various items to the company using the business account and in few occasions I had to return some of them so I got refund. I then created a refund account under income and assigned all the refund transactions to it. However, it now looks as if my income has increased.
Question: How I could go about this so that this refund transactions don’t look as income?