Director's Loan Opening Balance

Money was recovered from the treasury due to company being re-instated, after my previous accountant managed to get us closed down for not getting the books in when he said he had.

The recovered money was placed in the bank. How do I account for this in quickfile. The transaction shows in the bank transactiions but not sure how or what to tag it to.

I have entered everything in from the beginning of our financial year. I need to transfer the money owed back to the directors from the previous accounts package. The company owes the directors £15K but I am not sure how to enter this. I think I need to add a starting balance to the directors loan account. Please could you explain the best way to enter this.

Regards
Laurie

Hi

I have sorted out the first issue above, but still need some advise on the opening balance for the DLA and where to journal this to, so it does not remain in the suspense account.

Regards
Laurie

Hi @laurie

Why does the company owe the director the money? Depending on the reason, depends on where to journal it to/from. You mention you had a previous accounts package - are you able to download a trial balance from it at all, as this would set everything up for you to basically continue on QuickFile

Hi

Yes I do have a trial balance from the previous package. The money owing to the director (me) is money I have invested to backup the company. It has been for all sorts of reasons, and so I wanted to enter it under one heading rather than entering every (200 odd) transaction. I want to treat it like a balance being brought forward if that’s possible. If detail is need of what this consisted of it can be seen by looking in the previous accounts package.

Regards
Laurie

As the money would still sit on the DLA (as it’s still owed), you should be fine with adding a transaction for the amount as you normally would, but pre-date the starting date of your account. It would act as an opening balance, but it won’t sit on your suspense account.

Hope that helps?

Thanks for the response.

So I don’t make a right pigs ear of this. would this be correct.

  1. Go to the DLA account.

  2. Input a new transaction

  3. Enter the date for the date I started using quickfile, which was the start of my financial year.

  4. Enter amount as money in ? This would show as money owed to me ?

Regards Laurie

Hi

Does this mean it should show in the Balance sheet but not the P & L Report ?

Regards
Laurie

Hi @laurie

Yes, as the money is owed it should show in the liabilities part of your balance sheet.

What you’ve listed above sounds correct to me.

Note: I’m not an accountant

Hi

Thanks for your help. That did the trick.

Regards
Laurie

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