Director remuneration - Correction

[Dave A]

Hi, we have been declaring directors remuneration from 2010 on the financial statements. It has never been paid out to the directors and it should have been journaled to their loan accounts. But that has not been done and I want to make a correction for it this year.

So what has the expense entry been posted against?
(You can't raise the debit entry without reflecting a credit somewhere, otherwise the books won't balance).

[ConstructionAccounting]

Impossible for me to see - i can only see the remuneration. It is possible like Andromeda said that they used the retained income account. Because of this and some other issues we had to let the auditors go so i think I will work through each account and try to find the other entry. That will be best - to tackle this thing from the very beginning.