Repayment of director's loan

Hi, please advise me how to record the director’s loan repayment with payslips (salary)? Can I transfer funds from Net wages to Director’s Loan Account using Journal? I keep a record of any money I borrow from or pay into the company on Director’s Loan Account. For example, if a payslip has been generated that has salary and expense reimbursements to the director, instead of paying this into the directors personal account I would like to pay off a loan.

Hello @Ewa1

The below article may help.

Unfortunately, there is no information in this article regarding the repayment of a director’s loan using payslips. Instead of paying salary into the directors personal account I would like to pay off a director’s loan. I do not know how to record it

Hello @Ewa1

After entering the payroll journals as shown in the example below:

You would enter the following journal to reduce the DLA:

You can see in the example below that the DLA has been reduced by the amount of the Director’s (J Smith) net salary

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Yes you can offset net wages with DCA loan

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Thank you so much for help! Have a nice day Steve :slight_smile:

Thank you for help :slight_smile:

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