HI
I have put some of the income from the 3 directors into the directors loan account but this is showing as a minus
I have also repaid one of the directors their capital but this seems to making the directors loan looking worse
could you please help
Hi Paul,
By default in Solar Accounts the Directors Loan Account is a liability,
which means it is the total value of the amount the company has lent to the
directors. If in fact the directors have loaned money to the company then
it would be correct for the balance to be negative.
When the company pays money to one of the directors you should create a
General Transaction from the Cheque Account to the Directors Loan Account.
This will reduce the size of the directors loan 'liability'.
