Dear All,
Please consider the scenario below. I would greatly appreciate any kind of feedback - I have a rough idea of the solution but would like to get confirmation from more experienced users on this forum.
The company secretary for one of the companies we are dealing with paid £10,000 into the company's bank account as a loan given to the company. I know it's a basic question but would this be classified under capital introduced or would it go into director's loan account...I would put it under director's loan account but there's never any clear cut answers, thanks in advance
kind regards,
Replies (5)
Please login or register to join the discussion.
Pourquoi?
If they are just co. sec. they are not a director. So not a director's loan. Of course they may well be a director, or a shareholder, as well as co.sec. but its not automatic. They are a related party though...
It's a loan
You've said so yourself. But as WhichTyler says it is not a 'director's loan' unless they are also a director. It is not 'capital introduced'.
But then...
...if he were a director it will go under either current or long term liabilities anyway, with just a mention as a note. Perhaps I'm dumb, but what's the problem?