Amount due to director - Manager Forum

If the person is a director/owner then the business is a company (share capital) so the expense claim should be cleared to Shareholders Loans if ... Amountduetodirector yang March20,2016,11:16am #1 Ifiwantedtotakeoutsomecashforthedirectortopayforexpenselikegasanditemthatneedcashpaymentfirst,whereshouldIcategorizethissection. Tut March20,2016,12:25pm #2 ThebestwayistoestablishanaccountunderCashaccounts.NameitsomethinglikePettycashorCashbox.ThenuseTransferMoneytotransfersomecashfromyourbankaccounttothecashaccount.Whenyoubuythingsforthecompanywithcash,useSpendMoneyfromthecashaccount. Anotherwayistohavethedirectorusepersonalfunds.ThenfileaclaimunderExpenseClaims.Thecompanycanthenreimbursethedirectortocleartheclaim.Or,ifthedirectorisanowner,theclaimcanbeclearedtoacapitalaccountorowner’sequity.Thereareseveraltopicsontheforumaboutexpenseclaims.AlsoreadtheGuides. ADDEDCOMMENT: Notethatby“owner”Imeanasoleownerorapartner.Iamnotreferringtoashareholderinacorporationorstockcompany,whateverthatformoforganizationmaybecalledinyourjurisdiction.ThecapitalaccounttowhichIreferisapersonalcapitalaccountandhasnothingtodowithshareholders. Brucanna March20,2016,9:32pm #3 Tut: Or,ifthedirectorisanowner,theclaimcanbeclearedtoacapitalaccountorowner’sequity. Ifthepersonisadirector/ownerthenthebusinessisacompany(sharecapital)sotheexpenseclaimshouldbeclearedtoShareholdersLoansifitsnotgongtobereimbursedbypayment.Tocleartocapitalimpliesthatthecompanyisgoingtobeissuingmoresharesinlieuofthepayment.