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Ltd company purchases on personal credit card?
lifecanbetough4
Posts: 46 Forumite
Is this fine to do? as my personal credit card gives cashback
For example:
1. Debit purchases column, Credit DLA
2. then transfer money to personal bank account, so Credit bank and Debit DLA
3. *then pay off personal credit card*
For example:
1. Debit purchases column, Credit DLA
2. then transfer money to personal bank account, so Credit bank and Debit DLA
3. *then pay off personal credit card*
0
Comments
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Shouldn't it be in your company accounts as a cash purchase which you then claim as an expense?
That's how my accountant says to do it0 -
1. Debit purchases column, Credit DLA
2. then transfer money to personal bank account, so Credit bank and Debit DLA
3. *then pay off personal credit card*
We do this, only pay back at irregular intervals when the business has excess cash.
Really started when we started and used the DLA to 'loan' money to the business.0 -
lifecanbetough4 wrote: »Is this fine to do? as my personal credit card gives cashback
For example:
1. Debit purchases column, Credit DLA
2. then transfer money to personal bank account, so Credit bank and Debit DLA
3. *then pay off personal credit card*
Yes.unforeseen wrote: »Shouldn't it be in your company accounts as a cash purchase which you then claim as an expense?
That's how my accountant says to do it
That's exactly what he's doing.:)0 -
Just confused why an entry is made under DLA0
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Just confused why an entry is made under DLA
Done because purchase is initially funded personally, not from company funds. It's like a short term loan, hence DLA.0
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