How to Record Company Repaying a Loan to the Director?

Accounting
1

Hi hope someone can advise on this (there are some threads similar to this already, but not the exact situation):

When I initially set up my company’s business banking account - I lent the company £2000 by transferring the money from my personal bank account.

A few months later I returned the £2000 from the business bank account to my personal bank account.

How do I record this as simply as possible?

Thank you for any help.

Philip

2

Hi @pjarmstrong

You should have an original ‘money in’ transaction from your directors loan account when you introduced the money into the business.

In which case, you should be able to do the opposite - have a money in transaction on the directors loan account and tagged as a transfer from the bank account.

Hope that helps

1 Like
3

Yes, thanks a lot for you help. The support/community here is excellent!

Cheers,

Phil