Anonymous
Share this content
2

Balance Sheet - Directors Loan

Balance Sheet - Directors Loan

Didn't find your answer?

Hi all,

I've been given a Balance Sheet for my studies and within the current liabilities the Directors Loan Account has a negative balance denoted by the brackets. All of the other liabilities have a positive balance - no brackets. Am I right to think that the Directors Account is overdrawn and therefore the company is owed money? This is probably an easy question for you guys and girls - sorry!

Thanks,

Replies (2)

Please login or register to join the discussion.

avatar
By Ben McLintock
03rd Jul 2020 16:08

Difficult to know without seeing it. Sounds like you're right in what you suggest, that it's a negative creditor i.e. a debtor.

Thanks (0)
RLI
By lionofludesch
03rd Jul 2020 17:53

Add the numbers up and see if they're the same as the total.

Thanks (0)
Share this content

Related posts