Results 1 to 4 of 4

Thread: Business expenses paid from director's personal account

  1. #1
    Full Member
    Join Date
    Jul 2016
    Location
    namibia
    Posts
    50
    Thanks
    0
    Thanked 1 Time in 1 Post

    Business expenses paid from director's personal account

    Good evening folks,

    Seeking your wisdom...How best can one account for business transactions paid from the directors' personal bank account.

    The business would deposit cash into the director's personal bank account, thereafter the director would pay expenses e.g salaries from his account. Moreover, there is always excess money that he use for his personal needs.

    I am using pastel partner ver19. A bit stuck on how to process these...kindly advise.

    Thank you.

  2. #2
    Silver Member
    Join Date
    Aug 2018
    Location
    Johannesburg
    Posts
    209
    Thanks
    0
    Thanked 33 Times in 29 Posts
    I would create a cashbook for him. When you deposit money into his account, receipt it in that cashbook. Pay the expenses out of that cashbook. That cashbook will keep a running balance of his income/expenses, and the excess should then be put to his loan account at month end.

  3. #3
    Bronze Member
    Join Date
    Dec 2011
    Location
    Cape Town
    Posts
    184
    Thanks
    0
    Thanked 16 Times in 14 Posts
    I am not a laywer and hold no degrees in anything financial or legal area.

    For my company I pay a huge amount of invoices from my personal credit card, every invoice paid requires the invoice to be in the business name and proof of payment to be attached to my "claim".

    On our accounts system my directors loan account is used to track what I've paid for.

    Never had an issue with yearly audits on our books, nor did SARS raise any issue during an audit into my income.

  4. #4
    Full Member
    Join Date
    Jul 2016
    Location
    namibia
    Posts
    50
    Thanks
    0
    Thanked 1 Time in 1 Post
    Thank you very much folks for your advise, all coming to the same thing...much appreciated.

    I managed to get the director's private bank statements' and analysed the business expenses paid from the cash deposits. Thus processed, cash receipt journal for the cash deposited by the business against the respective expense accounts...the difference debited to his loan account.

Similar Threads

  1. [Question] Shareholder/Director Salary not paid but owed.
    By Meganika in forum Business Finance Forum
    Replies: 6
    Last Post: 01-Jul-16, 12:20 PM
  2. Legal Expenses - Personal Tax
    By h4ns3n in forum Tax Forum
    Replies: 0
    Last Post: 22-Nov-14, 07:16 AM
  3. Replies: 12
    Last Post: 18-May-12, 07:00 AM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •