We have a director (and 100% shareholder) who had the following transactions with the company in chronological date order:
opening balance: (£1k)
Funds borrowed: £50k
Dividends declared: (£100k)
Dividends paid out: £50k
Further funds borrowed: £15k
Leaving a Dr £14k balance on the director's account at the year end.
The director has paid 3% interest on the o/s loans.
Just looking for clarity on what the correct disclosure note should be. Should the disclosure note include the dividends for the part that just relates to the borrowed funds or should the full transactions be shown?
i.e. Opening balance (£1k), Advance £65k, repaid (£50k), bal c/f £14k as opposed to Opening balance (£1k), Advance £115k, repaid (£100k), bal c/f £14k
Guidance much appreciated. Thanks.