I'm a newbie and I've got myself SO confused and my Directors Loan account is a mess....I seem to be struggling with posting to and from my directors loan account and having read differing opions on the web, I'm not sure if mine is set up correctly...
I have 3100 set as Directors Capital and 3101 set as Director Drawings is that correct ???
I have it set up that, I have personal money paid in to the company as: eg £200 Debit to Bank (1200) and £200 Credit to Directors Capital (3100)
So. should I be posting money taken from the bank/cash account as a BP to 3100 and then do a journal entry from 3100 to 3101 for the same amount??? Or do I post the money taken out straight to 3101
And,
How should I post that the company paypal account, paid for a personal item, which needs to be shown through Directors Drawings? Do I account for the payment in the normal way and just do a journal entry from Capital to Drawings???
I think I've currently got incorrect debit and credit entries all over the place in 3100 and 3101 :( and I'm not sure how to correct it or if I can do a journal entry to correct it???
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