Settling Director Loan Accounts on Sage

[Innovativo]

Hi,
I've set up a director loan account (DLA) on Sage Instant Accounts v15 (with a nominal code of 1252). I've now recorded all transactions where I used my own personal funds during the start up phase of the business (company formation costs, business card printing, laptop that kind of thing), prior to getting the business bank account sorted - don't ask - it took ages!

The DLA is now a liability against my business and shows up as such on the balance sheet. Good... However, I now want to pay back the directors loan (to myself) from the business funds in the Business Current Account (nominal code 1200).

My question is, once I've made the physical transaction of the owed funds from my business bank account to my personal account (which I'll do using BACS), how do I correctly record this on Sage?

Previous advice I found on this forum suggested I just make a transfer transaction from my business bank account (1200) to my DLA account (1250) thereby making the balance of my DLA account nil. Does it matter that this isn't a "payment" transaction from 1200 and is this OK in terms of reconciliation between my physical business bank account and my Sage bank account in the nominal ledger?

I think its the double entry aspect I'm trying to get my head around. A liability will be zeroed and a debit entered in my ledger - that's right isn't it?!

Thanks in advance

Simon

[johndon68]

Yes, you would do a transfer between 1200 code and the DLA bank code.

This does a double entry as follows:

CR Bank Account
DR Directors Loan Account

John

[larabelle]

I ahve a similar issue, would you then need to do an expenses account dr and then cr the directors loan acc.

My partner started a new business last year but wont start trading until this year so he has paid for stationary etc our of his own personal account and bit confused how to add this all to sage and record him taking the repayments. Do you need a sepete VAT account as well