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Balance Sheet - Directors Loan

Balance Sheet - Directors Loan

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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!


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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.

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By lionofludesch
03rd Jul 2020 17:53

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

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