Owners funds introduced v directors loan account

[PrettyThings]

Hi
Could someone explain how these categories are different and should be used please with accounting software? We paid for stock, repairs, rent. etc. from personal money to set up a shop and were told by book keeper to use the 'owners fund introduced' account when posting where the money came from. After reading up, I'm not so sure that's right? Or doesn't it matter *Edit, it is a Ltd Co*
Many thanks

 

[johndon68]

Stuff you paid for would go in the Directors Loan account to show that the company owes you the money. Personally, I'd set the DLA up as a bank account in the software.

John

 

[Scalloway]

use the 'owners fund introduced' account when posting where the money came from

That would be the correct treatment for a sole trader. If you are operating through a limited company then it is a Director's Loan Account.

 

[MyAccountantOnline]

Hi
Could someone explain how these categories are different and should be used please with accounting software? We paid for stock, repairs, rent. etc. from personal money to set up a shop and were told by book keeper to use the 'owners fund introduced' account when posting where the money came from. After reading up, I'm not so sure that's right? Or doesn't it matter *Edit, it is a Ltd Co*
Many thanks

It's effectively the same thing but to be correct it should be a directors loan for a limited company.

 

[PrettyThings]

Thank you all very much!