Director loan

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Gaurav Sharma (Querist)
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08 June 2014 i want to know how can manage of director loan, his personal expenses, etc. in our books. should i create a separate company in tally or show in director's loan accounts.

Sandeep Dharar

Sandeep Dharar (Expert)
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09 June 2014 No need to create separate books. The payment received by the director from the company is the Expense for the Company. So

U must Create separate ledgers in the Books of the Company as under:-

Director's Remuneration - Indirect Expenses(deduct TDS u/s 194J if applicable).

Loan to Director - Current Assets Loans n Advances

Loan From Director - Current Liability Loans n advances.