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Directors loan repayment

Directors loan repayment

Hi

I have a director loan account which is in credit (company owes to director). Company is in loss for some years and day to day operation is funded by the Director. During the last financial year - Director has taken some money from the company and some overseas clients(customer of the company) have directly paid to the Director personal account.

2 Questions:

Can I treat the direct deposit by the client as repayment to director, because director has not paid these money back to company- I assume yes.

How shall I report the repayment in the final accounts- as a simple narration or any specific wording to be used because every year we have reported the loan given by director as seperately under "transaction with directors".

Thanks

Andy

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By geoffmw
30th May 2011 19:14

no need to be any more specific than

showing the amounts owed to the director at beginning and end of year. How the repaytments were made is irrelevant5. You just need to get the bookkeeping entries right.

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