If I enter into the director loan account money taken from the company by the director that will be paid back later, how can I make sure the bank account balance on the dashboard reflects this.
When I enter it into the directors account and tag it it shows as money out and then money in which is not correct, so confused…Help please#
It’s a straight transfer from the current account to Directors Loan Account. Remember credits and debits are reversed in accounting, this can make things confusing when looking at bank accounts. A DLA that shows in credit is an asset to the company, this will appear as such on the balance sheet. It’s an asset as it will eventually be paid back.
I answered a similar question the other day, but this was relating to out of pocket expenses made by the Director which the company must pay back… so in this case it was a liability and the reverse of your scenario.
I moved a post to a new topic: Directors Loan Account Help