Level 1

Reports and Accounting

Thank you JackS

 

In this case the directors loan is made up of a number of investments made in the preceding 2 years, one of the directors loan accounts balances is positive, the other is negative. My concern is, by recording it in the Share Capital Account it alters the original paid up share capital amount. I maybe wrong (I am not an accountant either) but would it be better recorded separately to maintain the integrity of the Share Capital Accounts original entries (paid up share capital)?

 

Assuming this is the case, being an equity account the corresponding entry could be made in the opening balance equity?