Loaned money
I loaned 12000 to a family member. How can I make the Category a balance sheet account?
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1 Posted by Stuart Beesley ... on 04 Feb, 2023 09:40 PM
Create an asset account called loan.
Put txns to/from that account to create the debt owed and repayments. To/from the bank account that you are making payments / receiving repayments to/from.
2 Posted by David Sackett on 04 Feb, 2023 11:15 PM
Thank you very much
On Saturday, February 4, 2023 at 02:40:30 PM MST, Stuart Beesley (Mr Toolbox) <[email blocked]> wrote:
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3 Posted by sprimost on 05 Feb, 2023 02:18 AM
From: sprimost
More on this...see
https://infinitekind.tenderapp.com/discussions/general-questions/13630-loan-to-friends-and-family-etc
IMHO, Making it a asset is not actually correct, accounting-wise.I would
suggest make it a "Bank" as in a CD {this is more like an account
receivable) rather than an asset. An "asset" can be "sold", a loan to a
person is the same as a CD to the bank....it can be redeemed, or charged
a penalty (in this case, to "write off" any missed payments).
Otherwise, for your consideration. [note that the repayments are
transfers, and not categories that might show up as income.
4 Posted by David Sackett on 05 Feb, 2023 03:52 AM
Thank you very much.
On Saturday, February 4, 2023 at 07:18:05 PM MST, sprimost <[email blocked]> wrote:
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5 Posted by David Sackett on 05 Feb, 2023 06:39 PM
Got it. Thanks
dhs
On Saturday, February 4, 2023 at 02:40:30 PM MST, Stuart Beesley (Mr Toolbox) <[email blocked]> wrote:
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6 Posted by Ben on 06 Feb, 2023 05:53 PM
To accountants, bank accounts are a particular kind of asset, along with cash in hand, investments, stock, property, prepayments, loans made, accounts receivable, goodwill and so on. Some assets are tradeable, others may not be or could only be traded at a discount (eg prepayments). Moneydance breaks bank accounts out to allow for extra fields and processing, likewise investments and credit cards, but from an accountancy point of view, assets like person-to-person loans can be handled under the general headings of assets and liabilities.