Directors Loan Account

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Can anybody help with setting up a Director Loan account on sage or even manually come to that?

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Directors Loan Account

    Hi,<BR>What exactly do you need to know?<BR>A straightforward manual system would be as follows:<BR><BR>Lets say a director takes out of the business £25,000<BR><BR>Set up a Directors Loan A/c = Dr Directors Loan A/c £25,000 Balance sheet O/Bal<BR> Cr Bank A/c £25,000 Balance Sheet<BR><BR>If he decides to repay some of the money lets say £2,000 p/month then you Dr Bank A/c and Cr DLoan A/c <BR>Hope this is ok.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Directors Loan Account

    Hi,<BR><BR>I've got Directors loan accounts set up on sage, If you go to nominal ledger and (depending on what version you're using) go to 'New' or the record wizard and follow the instructuins there, I use nominal codes 2400 - 2403, but if they are already in use, use a different one, but you must make sure that when you do this that you adjust your chart of accounts accordingly, otherwise the new nominal account won't appear on your balance sheet at the month end. If you don't know how to adjust your chart of accounts, let me know and I'll send you an explanation.<BR><BR>Sarah

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