Directors Loan Account / Dividends

T J

I've taken over the accounts of a ltd co. The TB sent to me by the previous accountant doesn't show any balances for DL accs.
During the year the directors had salary plus "drawings" which went as a dr on the DL acc.
I hadn't finished the final accounts by 31st Jan when the personnal tax returns were due so I estimated an amount of dividends. Then made a journal in the accounts to cr DL acc & dr dividends acc.
Now the final accounts are finished there is a small dr balance on the DL accs. Can I transfer this to a "proposed divs acc"? Or is it ok to have a dr balance on the DL acc?

Thanks

Dean

No offence but if you are going to take on the roll of agent for a limited company then this is such a basic question I worry for the client.

You can have a debit balance but transferring it to a 'disguising account' could amount to money laundering!

Depending on the amounts involved there could be a s.419 tax charge. Regardless of the amount there is a statutory obligation to disclose the amount in the financial statements.

Some CPD in order I guess.

Regards

Dean