Jump to content

Recommended Posts

Hi all,
When reconciling P&L accounts for your property ltd company, what is the correct way to categorize a director's loan received (specifically for the purposes of funding the deposit for a BTL)?
Same question for mortgage interest repayments.

Anthony Gosling
WG Estates | Property Investor

Share this post

Link to post
Share on other sites

Hi @goslingl12

You've probably resolved this now, but I agree with Debbie.  The accounting entries when you transfer cash to the limited company would be as follows: 

Dr  Bank Account
Cr Director's Loan Account

That is, money comes into the bank account and sits as an asset of the business, but there is a liability recognised to you as a director for the same amount.

PM me if you need more detail.

Many thanks


Share this post

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now