What accounting entries should be made to reduce a CC member's loan account to zero, in the most tax-efficient manner? The CC has made loans totalling R200 000 to the sole member. The CC has no interest in getting repayment of the loan. It can write off the loan claim, or it can accept a notional loan from the member in the same amount and do a set off, or it can declare a dividend in favour of the member, whatever might be required to expunge the loan.