Hi All, Since starting out I have made 6 bank transactions from my business current account to the two shareholders current accounts.I wish to record these as directors loans, for which I have been advised to create a journal entry for each transaction.This is how I have handled the loan payment:Journal for CR business current account & DR directors loan account (setup as a current asset account).2. Then matched the bank transaction to the journal.Then at year end I now need to repay the loan using dividends, there was enough profit to repay the loans made in the last FY, so now I need to pay down the loan and record the dividend. This is where I come unstuck? I've read lots of stuff about where this important transaction needs to sit.... Can anyone offer any guidance on this.Your help is greatly appreciated.

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Recording directors loan and using dividends to repay at year end

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Hi All, Since starting out I have made 6 bank transactions from my business current account to the two shareholders current accounts.

I wish to record these as directors loans, for which I have been advised to create a journal entry for each transaction.

This is how I have handled the loan payment:

Journal for CR business current account & DR directors loan account (setup as a current asset account).
2. Then matched the bank transaction to the journal.

Then at year end I now need to repay the loan using dividends, there was enough profit to repay the loans made in the last FY, so now I need to pay down the loan and record the dividend. This is where I come unstuck? I've read lots of stuff about where this important transaction needs to sit.... Can anyone offer any guidance on this.

Your help is greatly appreciated.