Loaned money to another company

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Johnathon Reeves
Johnathon Reeves Member Posts: 16 ✭
edited May 2020 in Reckon One
Hi all, I have a question.  My company has formally loaned money to another company (unrelated entity).  They have monthly interest repayments as well as principal repayments.  How would I capture this on Reckon One?  

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  • Kris_Williams
    Kris_Williams Member Posts: 3,293 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited May 2020
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    The monthly payments would be deposited to the Loan account which would have been created when the money was lent, for the share of principal and Interest Received for the interest
  • Felicity Bleckly_10462754
    Felicity Bleckly_10462754 Member Posts: 43 ✭
    edited February 2020
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    In your chart of accounts Add an asset account called ' loan to...' also add an income account ' interest received from...'. Enter the amount loaned to this company with a journal from your bank account (CR) to the asset account (DR) . Then when you receive repayments add the interest portion to the income account 'interest received from ...' and the principal amount to the asset account. This will clearly show you how much is left to be paid (asset account balance) as well as the income you receive from interest. Repayment Entries can be made with a journal. CR asset account, CR interest received DR bank account. Interest received is GST free. The principle repayment is not reportable. The loan amount is not reportable.

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