How do other people use the Directors Loan Account - assuming that you are using a limited company? My accountant said that it can be either a Liability or Asset and it will either be positive or negative depending on whether its an asset or liability and whether its in credit or debit. That part …

Its probably because I am not explaining what I am trying to do very well as I don’t really understand the concepts as well as I would like. I have been thinking about it, and decided that I don’t really like the idea of using the DLA as a bank account. I have stuck it in assets. As for the borro…

I agree with you and @Brucanna , I need to create a simple reference sheet for debiting and crediting accounts, because I am always making mistakes in this area - expense accounts are easy - they are debits, but I get muddled up with more complex accounts like the DLA

[image] dalacor: to allocate Business Mileage to the Business Mileage Expense Account and to decrease the DLA account You have a option that doesn’t require a separate Journal. With the Salary and monthly top up, that can be one transaction: Spend Money 100, line entries Salary 50 and DLA 50. …

I might end up doing quarterly or bi-annual transactions for business mileage. I have been doing it monthly in order to bump up my personal income, but the approach that my accoutant suggested is better for me so that I can have a set sum come in every month. So there is no longer a need to do mon…

@dalacor , be careful with the mileage. If you are actually spending money (such as on petrol) and reimbursing yourself, I think all the various musings above make sense. But if you are just claiming a standard mileage allowance for tax purposes, that is different, because no money changes hands. In …

You can use Capital Accounts tab to set up yourself on it. Just make sure to go to Chart of Accounts and rename Capital accounts to Directors loan account and categorize it under Assets or Liabilities. When you pay yourself from bank account, allocate funds to Directors Loan Account → Drawings. Whe…

[image] lubos: You can use Capital Accounts tab to set up yourself on it. He running a corporation, the Capital Account (tab) is the Issued Shares = Paid Up Capital. That can’t be allocated out of Equity. You generally don’t have Drawing in a corporation. One Paid up Capital account, one Dir…

[image] Brucanna: And how do you get the Expense Claim account balance to the Directors Loan account - by a JOURNAL If you are using capital accounts, you don’t have to balance anything. If you create general ledger account Directors Loan account, then you will need to use journal entry to c…

I think that I will stick to using the DLA in Assets because as you say Capital Accounts is not meant for Corporations which means that I will be using non standard accounting practices. I would prefer to do things correctly, so that its consistent and easy to understand whats going on for any acco…

Directors Loan Account as Asset/Liability or Bank Account

dalacor April 10, 2016, 11:54pm 12

I am going to get lost with all these roads! Which road do I take!

Capital Subaccounts & Share capital

Topic		Replies	Views
Directors Loan Account	10	1524	January 18, 2023
Recording business expenses	10	4325	January 18, 2023
Directors loan account	9	3337	January 18, 2023
Should Director loan be a capital account?	3	698	January 18, 2023
Directors Loans	5	590	January 18, 2023

Directors Loan Account as Asset/Liability or Bank Account

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