Opening Balance Adjustments - Getting it Back to Zero?


I’m just doing a few housekeeping jobs on my accounts today and I am a bit confused by the opening balance adjustment in the Director’s Loan Account.

I have £128.99 in the Director’s Loan Account as below.

How do I get this back to zero? Do I owe the business money or does the business owe me money? When bringing this balance back to zero, how do I go about accounting for this correctly?

As you can see below, my accountant has just described it as a “Opening Balance Adjustments”.

Thanks for the help!

Hi @Kevin_John

As the balance is positive, this would indicate that the director owes the money to the company.

This would be balanced by a simple transaction tagged as a bank transfer from the Directors Loan Account (DLA) to the Current Account. However, this should reflect a real transaction on your bank statement too.

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