I hope this is helpful and answers your question.
thanks very much but with that in mind, where in the balance sheet will it sit then. also we received a start-up grant which does not need to be repaid, where would that sit?
just with regard to the first question, the company owes the money to me personally, does that not make the companythe debtor and i am the creditor?
Simon, thank you for your reply...Just to clarify the position ..The person owing the money is a debtor and the person who is owed the money is the creditor.If you are doing company accounts then the company will show you as a creditor in its books.
Entries in the company's books would have been
Debit - Cash at bank (current assets)
Credit - Loan account (creditor)
I hope this is helpful.