Donna Lynch said:
I have always put this through as an expense to company, create a supplier account in the name of the director (expenses) raise an expense form and put this on as an invoice. This will then be included in creditors short term liabilities.
When you have the funds to pay just pay the invoice amount back to the director as if you were paying a supplier.
Donna, Thank you for replying to my query. My friend's accountant has been putting their payments down as a drawing, which I said to them I thought it was wrong.
Just one more question does your answer work with a Partnership?