Recording Payments Made To Owner/ Partner/ Director (Salary)
When the owner makes payment to himself, it needs to be recorded in the Accounting Software.
- If the organisation is a Proprietorship entity, The payments are recorded as “Drawings”.
- If the organisation is a Partnership, The payments are recorded as Partners Remuneration or Interest on Capital and adjusted to the Partners Capital Account.
- If the organisation is a Limited Company, The payments are recorded as “Directors Remuneration” Now, Let me show you how these payments are recorded in Moiboo Software.
1.Go to payment under Expense tab
2.Click Add Payment
3.Select the direct payment in payment type.
4.Select date and payment mode
5.Now select the “Directors Remuneration ledger in account and give the salary amount.
6.Add a notes for your reference.
7.Now Click Save. Payment added successfully.