Directors loan

Question asked by Teresa Mayo 3 months ago

My director lent the company some money. The company has bought a car and gifted it to the director in exchange for the money he lent. how do I reduce the directors loan account

9 Replies

Hi Teresa,

You can feel free to call us on our support line, 0203 475 4744. Alternatively, you can raise a ticket by emailing our helpdesk, contact support.

All the best,

Mohamed.

Hi Teresa,

I would suggest this as a money in transaction to the directors loan account. I am not 100% sure on the account code to use for this though. I would suggest asking an accountant.

All the best,

Mohamed.

Hi Mohamed

I have to put the money coming from somewhere and a transaction into the directors loan account. If I do this our banking will all be out as I will have technically paid for the car twice

Hi Teresa,

So you have a transaction coming into the directors loan account to reduce it? When you say you have the money coming in from somewhere, could you elaborate.

All the best,

Mohamed.

We purchased a car from the local dealer. Which our main account paid for and is account for as a purchase. When I go to put a transation money into the directors account it asks where the money money has come from. It won't let me bypass this. If I put from our main account we will have paid the dealer and them the director

Hi Teresa,

The from box can be a new contact that is your business. This would cause any issues as it is just you paying the directors loan account.

All the best,

Mohamed.

So how do I get the main bank account to be the correct amount

Hi Teresa,

I am not 100% sure as I cannot see your account. Essentially you should have the following.

  1. A bill paid from the main bank account.
  2. A money in transaction to the DLA.

That should be all you need to record this.

All the best,

Mohamed.

Can I ask you to call me as this still won't work as I will have paid the same bill twice

Hi Teresa,

You can feel free to call us on our support line, 0203 475 4744. Alternatively, you can raise a ticket by emailing our helpdesk, contact support.

All the best,

Mohamed.

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