Account code for DLA capital introduced and Drawings

Question asked by Theo Williams 8 years ago

I've created a Director Loan Account, so I can (a) represent money introduced by me into my business and (b) set up the process to pay set-up bills for my company that I paid for with my personal finances (i.e. prior to my company reg date and business bank account start date).

I cannot find preloaded accounting codes for Capital Introduced or Drawings, relating to DLA.

Which preloaded codes should I use for these transactions; or if I need to set them up, under which account types should I set them up?

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Hi again Theo (should have answered this before the later one) I'm assuming you've set up a DLA in the Money/Bank screen? If so then any money introduced by you into the company's bank account, is just treated as a transfer from the DLA to the Bank account.

Similarly, if you ever just draw money from the company bank account to repay some of your loan, you treat that as a transfer from the bank account to the DLA.

With regard to "Drawings" to pay company expenses, you either enter the bill first then just pay it off from the DLA (per your other question) or create a "Money out" entry in the DLA to record the company expense in the appropriate account.

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8 years ago

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