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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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.
... 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."