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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

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  • 3 weeks later...
  • 5 months later...

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




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