I am getting my company books upto date and I am having a small (BIG) issue with member loans - it all seems very confusing (I am not an accountant)
I use Quickbook Accountants Edition 8.0.
I have created 2 loan accounts:
Credit Card Loan (other current liability)- for all purchases from my credit card that needs to be paid back
Members Loan Account (long term liability)- we use this to track all of our personal expenses that we put throught the company (naughty I know but we will get to drawing proper salaries soon)
I want to know how do I capture the transaction to back-pay our "salaries" (below PAYE threshold) from our members loan?
I tried to do a journal entry and tranfered monies from our "Member Loan" and Credited "Salries & Wages" but when I did a Profit & Loss and Trial Balance report - things just didn;t look right - so I deleted all those entries.
Any cl;arity on this issue would be greatly appreciated;}