Directors advance in company accounts
Discussion
Just looking at the abbreviated accounts posted on Companies House and there is the following stated:
As at June 30 2017 - (12,581)
Amounts advanced - 30,000
Amounts repaid - (14,957)
Amounts written off -
As at June 29 2018 - 2,592
Am I reading that correctly in that the company loaned the director £30,000 some time before June 2017, that they had paid roughly half back by that point and nearly all by June 2018?
As at June 30 2017 - (12,581)
Amounts advanced - 30,000
Amounts repaid - (14,957)
Amounts written off -
As at June 29 2018 - 2,592
Am I reading that correctly in that the company loaned the director £30,000 some time before June 2017, that they had paid roughly half back by that point and nearly all by June 2018?
https://beta.companieshouse.gov.uk/company/0799510...
Edited by jammy-git on Thursday 27th June 13:29
So, I happen to know that this company took on a company loan to roughly the same amount as the advance (though I'm not sure when exactly). Is it reasonable to think that he may have taken out a company loan, and then taken that money out of the company in the form of an advance, then paid off that advance in the form of unpaid salary/dividends?
jammy-git said:
So, I happen to know that this company took on a company loan to roughly the same amount as the advance (though I'm not sure when exactly). Is it reasonable to think that he may have taken out a company loan, and then taken that money out of the company in the form of an advance, then paid off that advance in the form of unpaid salary/dividends?
Not sure what you mean by unpaid salary. It’s possible the company owed him salary and or dividends, which were offset against amounts he owed the company. What are you trying to establish?
Just whether it is likely/possible that the director took out a company loan and then paid it to himself?
Also, that those accounts showed that the company had paid £30,000 to the director, not that the director had paid £30,000 into the company?
Also, that those accounts showed that the company had paid £30,000 to the director, not that the director had paid £30,000 into the company?
Edited by jammy-git on Thursday 27th June 17:25
jammy-git said:
Just whether it is likely/possible that the director took out a company loan and then paid it to himself?
Also, that those accounts showed that the company had paid £30,000 to the director, not that the director had paid £30,000 into the company?
Yes. As per my post. But it owed him money at the start, and he repaid most of the rest. Also, that those accounts showed that the company had paid £30,000 to the director, not that the director had paid £30,000 into the company?
Edited by jammy-git on Thursday 27th June 17:25
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