Hi, I hope someone can help please as I've read a few posts but I can't seem to work out which is applicable.
My friend's situation is a brand new business, the business is very simple and small, with cash coming in and expenses going out, no stock, assets or anything complicated. The owner has deposited £2000 cash into the business account, how does he record this? Is it Owners Equity or Directors Loan? He doesn't planned to be paid back any time soon, so no repayments, no interest.
I've read one discussion on here where it says he needs to be set up a a supplier but when I was in this exact situation (for my similar company a few years ago), I set up a Directors Loan account and pretty sure I didn't set myself up as a supplier but maybe I should have. Any guidance would be much appreciated. Many thanks.
