Hi Marc, Don has answered your first question fairly completely. Whether you treat payments you have made on behalf of the company as a loan or a contribution to equity really depends on your intention to pay back the amounts and the timescale on which you intend to do it.
If it ASAP (e.g. you are just waiting for the cash from a startup loan/bank account to the company to come through), treat it as a loan to the company. If however you expect it to be some time before you can recover the amounts, then it would make more sense to consider the payments as a contribution to equity. Although you could record what the company owes you by raising an invoice and treating yourself as a creditor of the company, it would be reasonable practice to simply set up a Liability:LoansFromDirector account to record the transactions as Don was suggesting and then simply recording the repayment of funds as a payment of the loan (i.e. a debit entry to the liability:loan acoount and a corresponding credit entry to the company's bank account). If instead you had recorded it as a contribution to equity you would have a similar transaction on the relevant equity account when you withdraw the funds. If you do raise an invoice (Bill to the company) it is automaticlly posted to the Accounts Payable when posted. The account for the other split would be the Liability:LoanFromDirector account or Equity:Director'sContribution depending on which choice you made about recording the loan. In Australia, I know it is possible for Director's loans to a company to be secured in much the same sense that a bank loan to the company would be secured, but this requires specific action to take out a security at the time the funds are advanced to the company to register it on a government securites register. This would provide you with security in the event of liquidation of the company as you would be treated as a secure creditor by the liquidators. Whether this is also the case in Scotland will depend on local legislation so if this is an issue with funds of any significance involved, it would be advisable to consult a local accountant. David Cousens. ----- David Cousens -- View this message in context: http://gnucash.1415818.n4.nabble.com/company-invoices-from-director-Accounts-Payable-tp4692936p4692949.html Sent from the GnuCash - User mailing list archive at Nabble.com. _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
