Moving transactions from a single Directors Loan Account to multiple DLAs

We’re a LLP with 3 partners. I used the Directors Loan Account to record purchases etc. made by the partners before our bank account was set up. Our accountant has pointed out it’s better to have 3 separate DLAs. I’ve set up these 3 accounts but how do I transfer transactions from the old DLA to the 3 new ones? Do I just delete from the old account and post in the new ones? What about tagging?

I would keep it simple and just transfer a balance for the other directors to each of the new DLAs. You can add notes to the effect of “Opening balance for [director name]”.

Thanks Glenn. I’m afraid I’m pretty clueless on bookkeeping (learning quite fast, if painfully). Do I leave the detailed transactions in the original DLA?

No problem! Yes you can leave everything as is in the existing DLA. You would just initiate two transfers to move the appropriate balances to the new DLAs. Your accountant will primarily be interested in the balances of the DLAs at the year end.

Thanks again (and thanks for such a great facility as QuickFile). I think I understand what’s needed. I’ll give it a go anyway and see what happens!

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