Dividends & Director's Loan Account

 

Client withdrew different sums at different intervals last year and declared dividend on 31/03/2011(last day of the company's accounting period).  Dividends were processed through an entry reducing the director's loan account.  Is this allowed as I believe the interest payable on the dir loan is an empl benefit even if the amounts are minimum.  Am I correct in my understanding ?

Thanks

Mohammed.

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This is allowed

zarathustra |
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