Sage Directors Loan Account

[businessowner350]

Hi Everyone,

What is the best way to create a Director's Loan Account in Sage? Let's say the company owes £1000 to a director, do we just simply create a new bank account titled "Director's Load Account" with an opening balance of £-1000 ?

Of course, all future transfers between DLA and Current Account will be recorded via Sage, but for the purposes of opening the accounts in Sage, is the above method ok? Past transactions will have been recored on a spreadsheet.

Thanks

 

[johndon68]

Thats the way I do it - my DLA is set up as a bank account. It makes it that much easier if I purchase something for the company.

John

 

[Searching for Perfection]

You can simply create a seperate nominal ledger for Director Under Current Liability Section preferably 2103.... then enter the the transaction as usual, for example in case you owe some money to business or withdraw cash from the Business Bank account then in that case enter that transaction as bank payment to Director current account.

 

[kevin.doran]

I use VT not Sage but it makes no real diff. I personally always go down the bank a/c route.