Confused myself with the directors Loan Account

Hi people. I seem to have confused myself with the directors loan account.
I transferred £70 from my personal account, into the business account to make some purchases (new startup limited company - Vat registered)…

based on the instruction for capital shares etc the loan account was already £100 in credit.
I made a money out transfer to the current account for the £70 i transferred to the company and £10 to petty cash (i gave the other director a tenner just in case)… We are now showing, £20 credit in the directors loan account, £11.53 credit in the current account after the spend (correct)… and £10 in petty cash (correct).

However there is no physical evidence in quickfile about the £70 i transferred over from the personal account… Obviously later on when the bank statement goes in, this will show up as a credit in the account… Do I need to do a “money in” in the current account (from my personal bank), then pay that back in to director loan account?

Sorry if that sounds a little all over the place… but i need to make sure that i dont muck it up too badly before there’s enough in the coffers to get the accountants to look at it :slight_smile:

Your share capital entry should be
Dr Diretor a/c
Cr Share capital

Any money spend by director on behalf of company directly should have credit entry in Director a/c, any money introduced should be debited to bank and credit to director a/c

Thats left me a little confused… I followed the instructions for the shares in the guide… so i am pretty confident that is correct… the confusion is how i actually enter the money i lend the company…

My thought is Directors Loan account -> money in (from me) = £70…then
current account -> Money In (from Directors Loan account) £70.
Then Current account -> Money Out (To staples).

When the company repays me… It would be Current account -> Money out (to directors loan account) - £70
Directors Loan Account -> Money Out (To my personal account) = £70

is that correct?

I know later in the year, the accountant will be making sure everything is right… i’m just trying not to make to much of a mess for her to fix :smiley:

thanks

From your main bank account screen, enter £70 money in and tag it to Director loan a/c, any expenses would money out tagged to relevant P&L items or asset a/c. Any money paid back to director would be money out tagged to Director a/c and thats it

Ahh Ok… I get it… so i did it pretty much right… Thanks… I know where i’m going with it now then :slight_smile: