Due to unwanted circumstanced, I find myself in a position to redo my business books and have to capture everything since June 2015. I'm not an accountant and don't want to get one on board again at this stage.
The problem: What is the correct procedure to setup a Director's Loan account? This is a new PTY, registered in June 2015 and I put some cash into the business' bank account from my personal bank account. The company is VAT registered. I decided to use XERO since it ties in well with out E-commerce solution. Pastel / Quickbooks didn't give me all the options I wanted and since I'm not an accountant, don't have the time to try and figure this all out.
Now, in XERO, I setup a "Non-current Asset" account for the Director's Loan. 0% VAT. I have recorded quite a few payments asof July 2015, and made a withdrawal in August 2015, to my personal bank account.
1. Is this the right type of account?
2. How would I record the withdrawal from the business' account, to my personal account, against the loan account?