Me and my brother remortgaged our houses and started a manufacturing business together. The business was in my brothers name, as a sole trader. After about a year we fell apart and decided to go our ways. I set up a Ltd company and carried on using the machies we had bought together.
As i now owe my brother about £25k for his share in the machines, do i need to show this as a creditor in the accounts as him as a creditor or show it as directors loan (that i as a director giving machines to the company). Its not the company which owes him money but i as an individual.
Any input will be much appreciated.