Question asked by Paul Barnes 10 years ago
I made a payment from the company bank account to my personal bank account, and so now need to explain it in clearbooks.
I would like the amount to come from the directors loan account.
How do I best explain this to ensure that the right values go in the right accounts.
Transferring it means exactly that ;-)
Think about it like this:
The transfer out of the current account is exactly what you want i.e money to leave the bank account.
In your head, this then puts money 'into' the DLA I presume? In this scenario you are the bank so the DLA having a positive balance is correct as you (as the bank) owe that money back to the business.
Best answerExactly.
Not my best work but this might help also http://platformaccounting.com/directors-loan-accounts-who-what-where-when-and-why/
More coffee required at this end also!
I think I get it now - I was imagining the DLA balance continuing to grow and grow but it will come down as for example company expenses, dividends etc are created and booked against the DLA?
So I should click transfer on the explain screen as below? Simple.... (for now)
It's early so that might not be the best explanation I've ever given...
Ignore the line But it's really left and is not elsewhere - perhaps "But its really left and is elsewhere"!
I'm thinking I'm confusing myself....
The Company has paid PB personal account £3500. So the cash has left the company.
On explain transactions - if I say the payment is a transfer doesn't it debit the company bank account and credit the director loan account? But it's really left and is not elsewhere.
Should I explain the transaction as being a payment to me (as if it were a salary payment) but code it as DLA rather than Salaries on the drop down Account box?
Do you have both bank accounts setup in Clear Books? If so, it's simply a transfer between accounts (from current to DLA)
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