A "directors loan" is quite a common thing in the UK for companies. The concept is fairly simple, so anyone in the world should be able to understand my description.
Generally the director loans the company money to get it up and running, so the company has a liability to the director. https://www.gov.uk/directors-loans/you-lend-your-company-money The director can charge the company interest, but I don't do this, as it makes one's personal taxation more complicated. It's also possible for the director, or close family member to borrow money from the company with no interest, subject to certain restrictions - it has to be paid by a certain time. https://www.gov.uk/directors-loans I don't think my accountant will particularly care how I do this, but I thought I would do it this way. If anyone can suggest a better way, please do. 1) Add myself as a vendor 2) Since the company owes me money, I set the account Liabilities -> Accounts Payable -> Director Loan. as I thought that was the closest thing to allowing money to be moved out of the company, into my personal bank account. When I tried to pay myself using GnuCash, I was expecting money to go out of the company bank account,into my personal account, and reduce the company's liability. However when I set up a bill, I could see it was only possible to bill this as assets or expenses - *not as a liabilitiy*. Does this mean I need to set up another account for expenses? Expenses -> Director loan ? If I do that, I could pay from the company bank account into the Expenses -> Director loan account, *but it would not reduce the liabilities account*. I know "split transactions" exist, but I have not studied them. Is that what I need here? Can someone please point me in the right direction, so I can move money out of the company, into my personal account and reduce the company's liability? In the event the company paid me the complete directors loan, and I decided to borrow money from the company, would that expense account just go negative? Dave _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
