Directors loan account in credit and P&L

Hi,

I’m looking at annual accounts for a small company where the directors loan account is in credit (company owes directors).

1) As the accounts currently stand, the company is due to make a profit.

However, the amount that the company owes the directors is much more than the profit would be.

- How can some of the loan be moved from the balance sheet and have an entry in the P&L?

- Can it be included as an item somewhere in the P&L?

2) Also, with the directors’ salary, they didn’t withdraw the whole salary due for the year from the bank.

The half which they did withdraw from the bank is already in the admin expenses. How to account for the salary still owing at the end of the company’s financial year?

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Euan MacLennan |
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