Seperate Directors Loan Accounts

[kevinf]

Hi,
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”

[QFBeth]

Hi @kevinf,

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

[kevinf]

Thanks Beth,
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

[QFBeth]

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?)

[kevinf]

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?

[QFSian]

Hi @kevinf

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.