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Thread: Accounting queries - interest on director's loan account

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    Accounting queries - interest on director's loan account

    Hi Everyone I am the admin officer of a Private Company and record all Income and Expenditure. I would like to know about charging the Director interest for debit funds in his Loan Account, what the interest rate is. Would it have to be on a monthly basis and posted to Interest Income in the Company’s records?

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    Hi Colwit

    These are the very minimum rates you should use if you don't want to get beaten up by SARS, and you should compound it monthly.

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    Thanks Andromeda I think I'll use Prime Rate to be on the safe side, I think it's 10.25%.

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