Home – New Forums Money matters Director loan account (asset) when deregistering a company

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  • #999568
    Berty10
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    Hello

    I am the sole director of a company that I want to deregistered (cost). I continue the business as a sole trader.
    In my company balance sheet, there is only left the DLA (director loan account) in asset, around $21,000. The company run at a loss in 2019 and 2018

    I have a $3000 director’s fee in the Profit and Loss so far.

    How can the $21,000 be best treated (director fees, or loan waiving/forgiveness and what journal entries would apply?
    Also, if the $3000 and $21,000 are treated as director fees for the year, I will have to pay Super .

    Thank you for you assistance
    Berty

    #1220314
    Paul – FS Concierge
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    Hi And Welcome to Flying Solo [USER=114994]@Berty10[/USER] . It is great to have you!

    Hopefully some helpful members will be along soon with some advice to point you in the right direction.

    Cheers

    #1220315
    Precise Tax Solutions
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    The answer will depend on:

    1) when you removed the money from the business
    2) whether there were profits made in that year(s)
    3) whether a complying loan agreement was entered into

    There are a number of ways this could play out, depending on the above (and other circumstances). You should probably sit down with a local accountant to get some proper advice on the situation.

    #1220316
    Berty10
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    Thank you Ben

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