I have been working a set of financial statements and need some advice on raising interest on the directors loan account. Some back ground information:
- the company has been trading for 3 months
- for 2 months the loan account was in debit, and in the last month the loan account went into credit.

What i was wondering is do I raise the interest monthly on the debit and the credit balances - which will then create interest income and interest paid in the income statement of the company;
Or, do I only raise interest on the debit balance for one month (which is the year end month)?

Any advise is welcome. I've been researching this for a while and only found limited guidance.