Your comments

When paying back monies on the Director's Loan Account to the "Bank Account" shown. Is this just the companies Current Account ? 

I can see that the "Director's Loan Account" balance will reduce by £1000 showing the account is being repaid but I'm just not clear on how this relates to the actual Bank Feed transaction showing -£1000 leaving the "Bank Account" as an expense.

Is this irrelevant? Is it just how the system manages income and expense from loans as apposed to a REAL expense and REAL sales income ?