Loaned money to another company

Johnathon Reeves

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?  

Kris_Williams

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

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.

Zappy

Why don't you set it up as a loan and pay back the loan alloacting the loan repayments and the interest to the reckon categories? 

Zappy

Flick, no one needs to use general journal entries ever for cash payments in Reckon one. You can break the loan payments down in the cash payments journal. Ask me how.