Directors Loan account in credit for small company

Yes & Yes

Yes - Under the FRSSE, you are required to disclose transactions with related parties and the FRSSE specifically states that directors are related parties.  There are exclusions for salaries paid to and pension contributions paid for related parties, but loans and dividends paid to directors must be disclosed.  The required disclosure is the balance outstanding at the end of the year (with last year comparative) and the amount of any interest paid (with comparative).

Yes - You should state as the company's first accounting policy that the accounts have been prepared on the going concern basis on the grounds that the directors will continue to provide sufficient finance.