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CarolineHughes
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CruzAccountant, post: 27961 wrote:
That entry will work if you deposit the funds, or your bank won’t balance!

If you’ve loaned the money to the company and decide to charge interest, then you’ll need some sort of document showing that.

Formal loan agreements are necessary for Division 7A loans, or for funds you owe the company as a director. You’ll need to check with your accountant regarding the latest rules governing Div 7A because this are is a target with the tax office.

Cool, thanks CruzAccountant! I won’t worry about interest and I only intend the loans to go one way so hopefully won’t fall foul of Div 7A.