Dividend to net against director loan account

Hi there,
I want to issue a dividend to be applied against outstanding director loan.
How do I do that?


Hi Tom,

Firstly, I’m not a qualified bookkeeper or accountant so I can’t guarantee this is the correct way…

If you click on Reports on the main menu, then Journals, create a new journal entry as follows:

Nominal Code Description Debit Credit
(3102) Dividends Paid Joe Bloggs Dividend 2000
(1201) Director’s Loan Account Joe Bloggs Dividend 2000
(3101) Retained Profit & Undistributed Reserves Joe Bloggs Dividend 2000
(3102) Dividends Paid Joe Bloggs Dividend 2000

Also, if you go to QuickFile: Free Accounting Software, you can generate dividend vouchers by selecting a transaction which has been allocated to the Dividend nominal account (3102).

Hope this helps!


1 Like

Shouldn’t be any need to touch the retained profit nominal

Simply applying the dividend and DLA nominals should be fine. The retained profit will work itself out


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