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Director Loan Account in Company House Accounts

Director Loan Account in Company House Accounts

Very Quick Questions

1. If in a companies accounts the DLA is a debit balance (Director Owes Money to the company). How should this be classified - As a current Asset?

2. If in a companies accounts the DLA is a credit balance (Company Owes Money to the Director). How should this be classified - As a current Liability or Long Term Liability?

Thanks for your help

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30th Jan 2013 12:41

You answered your own question :)

Owed to the company should be repaid within 9 months of year end so classed as current debtor (otherwise big tax bill will arrive).

Owed by the company depends on the loan agreement in place as to whether it is current or long-term liability.

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By neileg
30th Jan 2013 12:52

and...

If there is no formal agreement, a debt is treated as payable on demand. So current asset or current liability.

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