How do I set up and account for directors loans?

[QFMathew]

Hi @Fusion

The capital account is under Reports >> Chart of Accounts (see the little ‘video’ in the other topic I linked to). Your screenshots show the bank management screen. Apologies if this wasn’t clear.

To give you a helping hand however, I have added this to your account for you, so this will now show in your Chart of Accounts.

@Fusion

I wanted to show that I had put some money as a loan into the company which has now been paid back

To show you’ve put money into the business, you would simply create a bank transaction on the ‘Proprietors Drawings Account’ showing money out, and tag it as a transfer into the current account. If you already have an untagged transaction in your current account, you can tag this as a transfer from your drawings account.

With taking money out, the reverse is done - tag it as money out of the current account, and into the drawings account.

You should, at year end, create a journal reflecting these amounts. Again, this is highlighted in the topic I linked to, but for your convenience I’ve quoted this below. In my examples, I used £5,000 of capital being introduced, and £1,000 of drawings being taken:

@QFMathew

1202 DR 5000 Capital (Proprietor’s Drawings Account)
3300 CR 5000 Capital (Capital Introduced for Sole Traders)
1202 CR 1000 Drawings (Proprietor’s Drawings Account)
3100 DR 1000 Drawings (Proprietor or Partner Drawings)

Which as a journal looks like this:

Figures used are just for example

And looks like this on your balance sheet:

@Fusion

loaned the company money to purchase a van

If the money was just transferred, then you can just tag this as a transfer into the current account (or wherever you transferred it to) as per the above.