Property purchase with loan funds

Christina McIntosh
Christina McIntosh Member Posts: 7 Novice Member Novice Member
edited October 2024 in Reckon Accounts (Desktop)
I am trying to work out how to enter the purchase of a property using funds from a bank loan. The property purchase and loan are both in company names.

I've set the property up as a fixed asset and also set up the loan as a long term liability - but I can't work out how to enter the loan drawn down transactions. Would have thought I could write a cheque from the long term liability account, but this doesn't seem to be an option?

Comments

  • Zappy
    Zappy Accredited Partner Posts: 5,258 Accredited Partner Accredited Partner
    edited August 2019
    Correct it isnt an option in the ordinary sense. Customarily you would enter it as a journal entry. You could enter it on a cheqie with two lines one to the purchase and the second line as a negative to the loan account (increasing the balance) with a cheque value of zero. It sounds complicated but it really isnt. Call me if you wish to discuss. Kevin t: 0407744914
  • David_9286106
    David_9286106 Member Posts: 4 Novice Member Novice Member
    edited August 2019
    Hi Christina,
    I would suggest your prepare a General Journal entry, as you will have other amounts to journal as well, such as any adjustments at settlement. You will have to go back to basic Debit and Credits to sort this one !
  • Zappy
    Zappy Accredited Partner Posts: 5,258 Accredited Partner Accredited Partner
    edited September 2017
    Definitely agree David.
  • Christina McIntosh
    Christina McIntosh Member Posts: 7 Novice Member Novice Member
    edited September 2017
    Thanks to both of you. Have worked my way through the journal entry and I think I've got it sorted (all balances anyway!). Will get the accountant to check and make sure they have all the settlement statements in any case.

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