Closing a loan account by making a balloon payment

matt Saunders's Avatar

matt Saunders

09 Aug, 2009 11:53 PM

Hi Moneydance

I am trying to work out how to go about adding a single balloon payment to a loan account as i have an amount outstanding in which i am able to payoff using a cash payment given to me which is not recorded within moneydance.

The problem i am having is that i have a business account which is not listed within moneydance and i have used some funds from this account to payoff loan which is recorded within moneydance. There does not seem to be a way to make an extra payment without moneydance asking for the account from which this money is sourced.

Is there a way to add a single payment in order to close a loan account without having to specify which account the funds are coming from (as it is not listed) as the financial overview is incorrectly listing my current liabilities. I did think about deleting the loan account though a warning is displayed saying that the the transactions recorded from other accounts will also be deleted (which i don't want to happen)

Any advice would be great fully received.

Cheers

Matt

  1. 1 Posted by Ben Spencer on 10 Aug, 2009 02:27 PM

    Ben Spencer's Avatar

    Hi Matt

    I am afraid that you are required to enter the account from which the mone comes from when making any transaction within Moneydance. That is the nature of double entry book keeping. However there is a workaround for such a situation. You could create an asset account within Moneydance with an initial balance equal to the amount of the balloon payment. Give the account some meaningful name such as "Balloon payment From Business Account" When you create this account set the option that says "Do not display on home page if zero balance". Then when you make the payment ot the loan account set the source account to be the "Balloon payment From Business Account".

    However I would encourage you to consider carefully what the tax requirements are for the transaction you are making. While I am not familiar with your situation If what you are doing is paying off a personal mortgage with business income, it might be necessary to first record the money coming from the business as personal income and then pay off the mortgage.

    Sincerely

    Ben Spencer

  2. 2 Posted by Matt Saunders on 10 Aug, 2009 02:55 PM

    Matt Saunders's Avatar

    Thanks Ben i really appreciate your reply and taking what you have
    said onboard i think i will add my business accounts aswell as this
    will be better in the long run.

    Thanks again :o)

    Matt

    Sent from my iPhone

  3. 3 Posted by Ben Spencer on 10 Aug, 2009 03:01 PM

    Ben Spencer's Avatar

    You are welcome, I'm glad to be of assistance.

    Ben

  4. Angie Rauscher closed this discussion on 24 Jul, 2011 06:51 PM.

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