View Full Version : directors loan account
Natalie123
26th March 2010, 09:20
Hi everybody, i wanted to know, if a limited company pay £5k to a director in a business and at the year end, assuming there is profit after tax of £20k, will the accountant deduct this loan amount from the profit or does this sit in the balance sheet as Directors loan.
elainec100@cheapaccounting
26th March 2010, 10:22
It is nothing to do with the P&L - just a balance sheet item
BCR Insolvency
4th April 2011, 07:56
It depends what the £5,000 is - is it a loan, a repayment of an in credit loan account, a bonus or a dividend.
If the latter 2 it's a P+L item, the last one being post tax, with the other pre. If it's one of the first 2 then it avoids the P+L altogether.
Your accountant will advise you which is best.
Regards
Kevin Lucas
MyAccountantOnline
4th April 2011, 08:27
Hi everybody, i wanted to know, if a limited company pay £5k to a director in a business and at the year end, assuming there is profit after tax of £20k, will the accountant deduct this loan amount from the profit or does this sit in the balance sheet as Directors loan.
Some accountants will transfer dividends to clear a directors loan account at the year end but its not the way I like to work.
I encourage clients to prepare or have prepared management accounts so that they can see what level of profits have been made and pay dividends accordingly.
elainec100@cheapaccounting
4th April 2011, 09:50
I encourage clients to prepare or have prepared management accounts so that they can see what level of profits have been made and pay dividends accordingly.
Our fee on line system produces mang accounts plus a dividend projection :)
MyAccountantOnline
4th April 2011, 09:53
Our fee on line system produces mang accounts plus a dividend projection :)
Same as us:)
elainec100@cheapaccounting
4th April 2011, 10:28
Same as us:)
Wow - didn’t realise you have got a free on line system now Nicola. Great stuff. Good to see others joining the on line revolution.
What do you use?
MyAccountantOnline
4th April 2011, 11:22
Wow - didn’t realise you have got a free on line system now Nicola. Great stuff. Good to see others joining the on line revolution.
What do you use?
We dont insist clients use any package - it depends on the clients exact requirements.
David Griffiths
4th April 2011, 13:28
Wow - didn’t realise you have got a free on line system now Nicola. Great stuff. Good to see others joining the on line revolution.
All change. Nicola's gone free . . .
Our fee on line system produces mang accounts plus a dividend projection :)
. . . . and Elaine's gone fee! :D
elainec100@cheapaccounting
4th April 2011, 13:40
All change. Nicola's gone free . . .
. . . . and Elaine's gone fee! :D
Mr On the Ball today :D:D:D:D
Well done you :rolleyes: