Writing off director loan accounts

[Temple]

We are in the process of winding up our limited company. I have 2 questions:

1. We have outstanding director balances on the books: i.e. we have 2 directors and 1 ex-director who are all owed funds from the business. All three of us have opted to write off those balances. How do I write off the balances correctly in QF?

2. In addition there is a small outstanding balance of £75 on some assets (office equipment) we previously purchased. We’ve been told by our accountant that we can do an exchange: i.e. as we are owed funds by the business we can keep the assets and the £75 can be used to reduce the balance on one or more of the directors’ loan accounts. How can I reflect this exchange correctly in QF?

Many thanks.

[Paul_Courtier]

Regarding the asset you can create a journal to reverse the asset charge and balance it with the DLA. So that’s sorted.

As for writing off the dlas entirely, it should be treated as a distribution. So I would journal reverse the dla balance and move it to retained profits or some other distribution nominal.

But I would strongly advise you seek an accountants advice first. If your striking the company off I’m pretty sure you already have an accountant so ask them.

[Temple]

Many thanks Paul.
Will try that out and speak to accountant