Director's loan account

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:08AM in AAT student discussion
Can someone please explain to me what a Director's loan account is and also how it is used?<BR><BR>Thanks<BR>Dawn

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Director's loan account

    A directors loan account is used when a director puts money in or takes money out of the business. For example if a director lends the company some money this would be credited to the directors loan account. Or if the director takes money out of the business it would be debited to the directors loan account. If the director owes the company money it would be a debtor and if the other way round it would be a creditor.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Director's loan account

    hi missl,<BR>the answer u gave created a small confusion in me...when the director withdraws money from the company wouldnt it be directors drawings???<BR>could you please help me out....<BR>thanks in advance<BR><BR>

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