Sage Adding Directors Loan Account

FiFiFu

I'm a Sage newbie and would like to add a Diretors Loan Account which I've been advised by my accountant should be nominal code 1300.

I'm using the Sage default chart of accounts and can't see where to create this new journal as there are no journals in the 13xx or even the 1xxx range included with the default chart of accounts.

I know how to create a new journal under an exising one (I've created 3201 for Drawings under 3200) but don't know under which default nominal code to enter one for Directors Loan Account. I know it is critical where I set up the journal for profit and loss calculation but am not sure where to create it.

I also want to set up a journal under the Directors Loan Account for a subset of entries so don't want to use a bank account for the Directors Loan as some people have suggested.

Can anyone help me?

longforgotten

What you want to create is a new nominal code not a 'journal'.

It is a code that should appear in your current liabilities on the Balance sheet. You are correct that your directors loan account has nothing to do with your profit and loss account. Your business must now be a limited company if you wish to use the directors loan account, and your drawings nominal code will be redundant now.

Sage tends to use different codes according to what type of business you are. Have a look to see if code 2300 is already being used... if it isn't create code 2300 as your directors loan account in current liabilities. It's as good a code as any. But wait to see if other readers have a better nominal code number to suggest. Sorry I can't do better and check precisely for you but I can't face turning on my laptop as its a bit late now.

All the best

FiFiFu

Sorry, you're correct, it is a new nominal code I want to create. I've created the nominal code 3200 in the accounts of a partnership which I run with my husband.

The directors Loan account is to be created in the accounts of my mother in laws limited company which I am now doing the VAT returns for.

My accountant has advised using code 1300 but I just don't know where to create it - under an existing nominal code or at a higher level in the nominal code "tree".

Hopefully someone can tell me how to do this.