Hi @CAL
With a Director’s Loan Account (DLA), the aim is to get the balance to zero, so the director owes nothing to the business and vise-versa.
In the case of a limited company, think of the DLA as your personal bank account. Regardless of how you personally invested money, it should be treated as a loan from the director.
So, if you have loaned, let’s say £1000 to the business in the form of a director’s loan, when the business pays this back, you can just tag it to from the current account to the DLA to bring the balance back down to £0.00.
There’s some reading material in our knowledge base in regards to the DLA, that may be of some help.
Hope that makes sense?