If a Director of a Limited Company pays for something for the company's benefit (e.g. business premises rent of £5000) and claims the expense, should you use Accounts Payable or Creditors?
Is this the correct journal entry?
Date (01/01/2018) Debit Expense 5000
Credit Accounts Payable (Director) 5000
Date (01/01/2018) Debit Accounts Payable (Director) 5000
Credit Director's Loan 5000
Is this the correct journal entry?
Date (01/01/2018) Debit Expense 5000
Credit Accounts Payable (Director) 5000
Date (01/01/2018) Debit Accounts Payable (Director) 5000
Credit Director's Loan 5000