Dividend to net against director loan account

[Tom_G]

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

Thanks!
Tom

[LC_Hydraulics]

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!

Thanks,
Grant

[Paul_Courtier]

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