Returning Funds To A Director's Loan Account

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1

I have a clients account and a directors loan account.

Say a payment is returned to the clients account for a director’s loan return, do I also add that transaction in the director’s loan account coming back in, so effectively I am logging the transaction input on two bank accounts?

I’m sure this is easy but just working through our (first) director’s loans.

Regards

2

No, just tag transaction from main bank to director a/c

3

Do you mean a director took a loan from the company which they have now repaid into the client account? Then that would just be a transfer from director’s loan to the client account. For a loan repayment the DL account balance should be going down, not up.

4

No, it’s that we the company have paid expenses for our client, but the client is now returning the funds to us.

I am simply logging these items in our director’s loan account, but when the credit comes back into the clients bacnk account and I tag the director’s loan account for this Quickfile puts it as a debit on the loan account when it should be a credit.

Any advice?

5

If you’re looking at the balance sheet or nominal account view then debit is correct - with bank accounts money in is a debit and money out is a credit (which seems backwards when you’re used to seeing statements from your bank, but those show the bank’s view of you whereas QuickFile shows your view of the bank).

6

Are you sure your question is correct. Seems a bit of a confusion.

  1. Why would you pay a client through a directors loan account. You can but its a bit unusual.
  2. You say “a payment is returned to the clients account for a director’s loan return” doesnt make sense.
    Do you mean you have a client who has loaned an amount to the Director so thats gone back to the client.
    Seems your client has 2 objectives. 1 as a client 2. as a loan provider?
    Even if its that complex just create tags for that client.
9

Further to the following post:

I think it would be easier if I had a dedicated ledger within quickfile that logs our owed funds.

What would you recommend for me to do this?