Entering money loaned FROM director TO company

How do I enter money that has been loaned by a director to the company ( 1 director company)? Do i enter it via the Director Loan Account and if so do I use Money In or Money Out? Confused !!

You’re on the right lines!

It’s basically a “Money Out” transaction on the directors loan account, this would then be tagged as a transfer to the current account of the company. Make sure the dates correspond with then the funds were loaned and deposited into the company account.

I know some get confused as to why that the DLA account is overdrawn, but that’s from the perspective of the company, i.e. the account is a liability… as in the company must eventually repay the director.

Hope that helps!


Hi Glenn,

Thanks very much for that explanation - bit clearer now. Also impressed I got a reply on a Sunday evening!!

Thanks very much again.


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