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Advanced Rounding Rules – Directors Loan Account

When Apply advanced rounding rules has been selected a check will be made on the un-rounded and rounded totals of each Director within each DLA account code. 

Where a difference occurs the rounding amount will be allocated to the first Director with a balance within the same account code.

For Example (Illustration only):

Account Code

Amount

Rounded

After Rounding

Directors Loan Account - B/F (5400)

Director 1

(200.55)

(201)

(200)

Director 2

(150.00)

(150)

(150)

Director 3

(315.75)

(316)

(316)

Total

(666.30)

(667)

(666)

Rounded Total

(666)

(667)

(666)

ROUNDING DIFFERENCE

1

-

Account Code

Amount

Rounded

After Rounding

Directors Loan Account – Capital Introduced (5401)

Director 2

(50.55)

(51)

(50)

Director 3

(80.65)

(81)

(81)

Total

(131.20)

(132)

(131)

Rounded Total

(131)

(132)

(131)

ROUNDING DIFFERENCE

1

-

Director

B/F

Introduced

Total

Director 1

(200)

-

(200)

Director 2

(150)

(50)

(200)

Director 3

(316)

(81)

(397)

Total

(666)

(131)

(797)

The same rule is applied to DLA under current liabilities (account codes 5400, 5401 & 5402) and long-term liabilities (account code 5800).  Where

The Director to which the rounding difference is allocated can NOT be changed.

See KB3094 -  What are Advanced Rounding Rules? for more information.
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