since Oct 2019 I have been posting Directors Loans into 1201 "Directors Loan Accounts when tagging. I have read the knowledge base and dont quite follow how to have 2 separate Directors Loan accounts.
Basically, I want all loans from myself KF to go into “KF Directors Loan Account” and all from PJ to go into “PJ Directors Loan Account”
You just need to create another account under the bank accounts tab Banking > All Bank Accounts
Click Create and then choose Loan account:
You can then name the accounts how you like
i tried that and i guess i am a little nervous of making a mess. It asks for bank name, sort code and account!
What i want to do is show the individual loans made by myself KF and the other director PJ.
I already have tagged transactions for these and then i would want to change the tags to the new loan accounts. Is that possible
The account number and sort code aren’t a required feed and the bank account name would be the “KF Directors Loan Account”
Are the tagged transactions locked? (By a VAT return or Year End?)
Thank you…i believe i have done it correctly. As the transactions are directors investments in the business, do i have to do something with regards to ordinary share option for each of the directors in the limited company?
For more information on how to use the Directors Loan Account and how to record share capitol, please check out the following post: Limited Company Bookkeeping - The Basics
If you’re still unsure about where to go from here, it could be worth speaking with your accountant.
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