Directors loan account

How do I add a Directors Loan Account?


Go to Settings - Chart of Accounts
Under Liabilities - choose new account - add details.

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Ok, so how do i add funds to the directors loan account?


Because it is a Liability and not a Bank Account, you will have to use Spend Money or Receive Money for the entries.

Hi, I need to also create a directors loan account because I have lent money to the business.
I can’t use “spend money” or “receive money” to record it because I paid the money directly into my supplier pre-payment account, (which I’ve setup in manager as an Asset account.

Could I use a journal to record the transaction?
-would I credit the directors loan account and debit the pre-payment asset account?

many thanks

That’s right, you can record this transaction as a journal entry.

Credit Directors loan accounts and debit Supplier advance payments : [Supplier name]

You don’t need to create asset account for supplier pre-payments manually, just enable Suppliers tab, create list of your suppliers and then you will get special control account Supplier advance payments with sub-accounts for each supplier which is more elegant solution.

Thank you Lubos,
I have enabled suppliers which gives me tabs for suppliers & purchase orders but I don’t see the advance payments?

I remember you mentioning that supplier pre-payment was something you were going to implement but I hadn’t seen it available yet.

Sorry Lubos, I stil dont see the advance payments account.
-I’m using version 14.2.0

EDIT: I’ve just upgraded to 14.2.47 and enabled the suppliers …but I still can’t see a supplier advance payment account, it doesn’t appear in chart of accounts or any of the dropdown lists on journals.

When Suppliers tab is enabled, you will get new account called Supplier advance payments which you can use to categorize any prepayments to suppliers.