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Directors Loan Account

  • 58 posts
  • # 85834

Hi,

I am unsure how to allocate these - there are two Directors loan accounts on our books one for each of the two directors.  I started working here in April.
I have been through the b/s and noted on a sheet of paper whenever i come across anything that refers to Directors loan or account - The problem is that the b/s give no clue as to which director these payments are go to or coming from....

Can somsone explain in clear 'dummies' english how I should go about recording these payments/receipts?

thank you
sarah
  • Companion Fellow PM.Dip
  • Practice Licence
  • 1139 posts
  • # 85843

Hi 

As an employee I recommend you contact the companys' accountant and ask she/him how they would like you to deal with this.   I dont feel as student you should be expected from you employee to do this level. 

  • Sarah Douglas C.FICB

    HouseTree Business Ltd 


  • Quote
  • 115 posts
  • # 85849

It can be a problem when there are 2 DLA`s but you definitely need to know which payment/receipt goes with which director. The accountants will need to know at the year end as there are paye, dividends and P11D issues.
  • 58 posts
  • # 85969

Thank you for your advice.

I have to date found all references to Director's Loans/transfers etc and made a list of them in Excel for the account to sort out when she next comes to visit.

Although I am a student member with ICB I am actually the only 'Bookkeeper' at my company.  It is only a small family run firm and the Accountant is quite happy with what I have been doing thus far.  She said as long as I can try my best to keep the invoices (supplier & customer) up to date and keep track of payments going out of the bank account ie the DLA, expenses and other payments such as wages etc then they will not have to spend too long with the year end procedure.
Though I have yet to learn how to Journal for PAYE and NICs - I am doing Home Study Bookkeeping which is why I am registered here as a Student.

Jo'Anne 
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