Looking for advice on how to record a loan from a director to Ltd Co. This was used to pay for costs relating to a property purchase and have not gone through the company bank account (so not transactions to relate it to) but were paid directly to the solicitors involved. I have put the amount as money in to the DLA but when I log the expenses against this it obviously reduces the amount, whereas we want to keep that amount as a loan to eventually be repaid.
Thank you!
I think I might have resolved it myself! I don’t think I should have put the ‘money in’ to the DLA.
Correct, a loan from the director to the company should appear as money out of the director’s loan account, leaving it overdrawn; an overdrawn balance on the DL account is a liability that the company owes to the director, and later transfers from the company current account to the DL account to repay the loan will act to reduce the overdrawn balance.
1 Like
This topic was automatically closed after 7 days. New replies are no longer allowed.