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Directors loan account

Discussion in 'Accounts & Finance' started by Mims27, Dec 12, 2013.

  1. Mims27

    Mims27 UKBF Newcomer Free Member

    Posts: 25 Likes: 0
    hi
    i need to post opening balances and i have £00000 to post to directors loan on the CREDIT side of the journal.
    does this mean the director owes the company money or the company owes the director?
    THanks
  2. johndon68

    johndon68 UKBF Contributor Full Member - Verified Business

    Posts: 2,567 Likes: 489
    If it is a credit then the company owes the director the money.

    John
    • Thanks Thanks x 1
  3. UK Contractor Accountant

    UK Contractor Accountant UKBF Newcomer Free Member

    Posts: 632 Likes: 117
    Just remember all credits are either revenue or liabilities and all debits are assets or expenses
  4. ksatish181

    ksatish181 UKBF Newcomer Free Member

    Posts: 4 Likes: 0
    Company owes the money of the director