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