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Post Info TOPIC: Disclosure of Director's Loan Account in the Abbreviated Accounts
Anna88


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Disclosure of Director's Loan Account in the Abbreviated Accounts
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During the year, director withdrawn monies when he needed and then interim dividend was offset to reduce DLA. Unfortunately in one months the balance of DLA exceed £15,000 and director paid interest on that to company. At the end of year is a credit on DLA. Should I make any notes to the abbreviated accounts in the section ""Transactions with directors"?

Many thanks,

Anna

 

 

 



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Cheshire


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Welcome to the forum Anna. A little intro might be helpful (we usually ask!)

Re your Q - Yes. Did he pay interest at commerical market rate? As I would mention that in the note too.



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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
Anna88


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Thank you for your reply.

He paid an interest at rate 3.3%.

The note should be made under "Transaction with directors" or "Related Party"?

Do you have an example of note regarding this disclosure?

Many thanks,


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Cheshire


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Trans with Directors I would say.

I have some wording but not to hand at the mo, will try to get it tomoz

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
Anna88


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I would be grateful if you could forward me.

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Cheshire


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Hi Anna
I got your email. Sorry for the delay - back to back meetings, no time to even eat and a sick very aged Aunt to contend with.

Something along the lines of


TRANSACTIONS WITH THE DIRECTOR
During the year advances totalling £xx were made to xxx, a Director of the company. These were repaid using dividends totalling £xx (2014 - £xx) and company expenses paid privately. Interest was charged on the overdrawn balance at market rate of £xx.

__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
Anna88


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Posts: 12
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Thank you so much for your help

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