6 Director's advances, credit and guarantees
At the start of the year, the director’s loan account was overdrawn by £15,131. During the year, the director received further advances totalling £63,507. Repayments and credits, including dividends, amounted to £64,071. As a result, the year-end balance was £564, representing an amount owed by the company to the director. Interest was charged on the overdrawn balance at a rate of 3.25% per annum. There was no formal loan agreement in place and no guarantees were provided by the company.