chattel mortage for a car

Raluca PrattRaluca Pratt Member Posts: 18
edited April 15 in Reckon One
Hi , I am using Reckon One. How do I record the weekly payments for a chattel mortgage for the business car? Thanks,
Raluca

Comments

  • ZappyZappy Accredited Partner Posts: 4,692 ✭✭✭
    edited August 2019
    Have you set up the mortgage in Reckon one? Do you have the copy of the finance contract and the repayment schedule?
  • Raluca PrattRaluca Pratt Member Posts: 18
    edited April 15
    No , I haven't set up anything yet.And yes , I have the contract and the payment schedule.
  • ZappyZappy Accredited Partner Posts: 4,692 ✭✭✭
    edited August 2019
    If you want to send me the figures with the name blacked out ill give you the journal and the inteterest schedule. Its not rocket surgery. My email is [email protected]
  • Raluca PrattRaluca Pratt Member Posts: 18
    edited April 15
    Thanks Kevin , just sent an email with the details.
  • ZappyZappy Accredited Partner Posts: 4,692 ✭✭✭
    edited February 2018
    Essentially it looks like this

    Dr Asset Motor vehicles at cost
    Dr Asset Capitalized interest (total loan interest)
    Cr Lease liability

    Now you need to have the schedule of interest payments because this will be amortized over the life of the loan. 

    The monthly entry will like this:

    Dr Lease liability
    Dr interest expense
    Cr Capitalized interest
    Cr Cash at bank

    I hope this makes sense

    Call me if you think I can help

    Kevin t:0407744914
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