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Writing off director loan accounts

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.

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.

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

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