Hi im doing some company accounts,im sorry but minds just gone blank, directors taken out dividends, and some money which they initially introduced in the buiness, so if for eg, income is 25,000 including capital introduced of 3500 which has been taken out, am i right to show 25000 and the 3500 which was paid back to come out through expenses as it is a liability ?
The money that the director initially introduced would have been credited to the director's loan account in the balance sheet. If the company has now repaid some of this money, the repayment will be shown as a debit to the director's loan account.
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Pearce & Co - Chartered Accountant and Chartered Tax Adviser
