Hello,
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!