UK Directors loan or cash sales

[Barca]

If instead of putting cash from cash sales into a business bank account, the director transfers an amount of money equivalent to the cash sales from his own personal bank account into the business bank account, would this bank transfer be recorded in the business accounts as cash sales or would it be recorded as an increase of directors loan, or could it be either?

 

[Fidget]

.....so... what's happened to the cash from the cash sales?

 

[russelldlee]

If you can prove the cash sales with invoices and back it up with an audit trail of where the cash came from (eg Customer>Director>Company) then it should be fine. It shouldn't have anything to do with a Directors Loan.

 

[Lee Thomas]

If instead of putting cash from cash sales into a business bank account, the director transfers an amount of money equivalent to the cash sales from his own personal bank account into the business bank account, would this bank transfer be recorded in the business accounts as cash sales or would it be recorded as an increase of directors loan, or could it be either?

Where are payments from customers deposited to? Why would the director transfer money equivalent to sales? Director and the company are 2 different people.

 

[davidotieno]

.....so... what's happened to the cash from the cash sales?

I thought to ask that too..