Tagging distribution of cash among shareholders before closing down a company

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1

Hello,

I’m not sure how to tag a money out transaction with distribution of remaining cash among shareholders before closing down a limited company.

Under ‘Salary, dividend or other drawings’ I have three options: Employee Salary (PAYE), Dividends, and Director’s Loan Account.

I think only “Dividends” could be applicable but is it a correct option to select?

Best regards,
Michal

2
  • Employee Salary (PAYE) - Are you paying them via a payroll system?
  • Dividends - Are you issuing them a Dividend Voucher?
  • Director’s Loan Account - This is just Money being paid out to a director

If you are unsure I would reccomend checking with you accountant.

3

Thank you for reply. It is not PAYE and it looks it can’t be Dividend too, so the only option would be Directory’s Loan Account.

But this creates a negative balance on Director’s Loan Account which is then still displayed in the balance sheet. I guess the only option in QuickFile would be through Journal to clear such transaction?

4

If you tag a Money out transaction on the bank and tag it as transfer to Directors Loan

You should see a Money in transaction showing on the directors loan account, this reflects you taking money out of the business bank.

5

All clear. Thank you!