I have recently started my own company and am trying to figure out the most correct way to process the following:
I purchased items cash from a supplier, these where paid from my personal account as there were no funds in the business account as yet.
I have processed the supplier invoice in the supplier journal and I have used the expense account to which it applies as the contra account.... that was the easy part but now I still have to 1) indicate that the supplier invoice was paid and I need to 2) indicate the funds used to pay the invoice as a loan from myself (as Director) to the company so that I can get it back at some stage. As no money has come in or out the bank account, I assume that further journals need to be processed. How do I do this and what would the contra accounts be?
Basic bookkeeping I guess to most but I would truly appreciate the help.