Directors Loan Account

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.

http://community.quickfile.co.uk/t/how-to-show-payments-from-personal-funds/481/6

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