note in accounts re overdrawn directors account

note in accounts re overdrawn directors account

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Could somebody please help with the wording regarding a directors overdrawn  loan account?

How it would appear in the Notes to the Accounts

Thankyou HELP

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By johngroganjga
06th Feb 2015 09:37

You need to disclose the name of the debtor, the amount outstanding at the beginning and end of the year, and the maximum amount outstanding during the year.

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Euan's picture
By Euan MacLennan
06th Feb 2015 09:56

... and the rest

The full requirements are set out in s.413 CA 2006.

The figures are usually given in tabular form (balance b/f + advanced in year - repaid in year = balance c/f) with a footnote giving the interest rate and main terms of the loan, particularly repayment.  If you are including the DLA in Debtors within 1 year and are avoiding the BIK on a beneficial loan, your footnote might read:

"The loan is repayable on demand and interest is charged on the outstanding balance at 3.25% p.a."

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