Loaned money

David sackett's Avatar

David sackett

04 Feb, 2023 09:16 PM

I loaned 12000 to a family member. How can I make the Category a balance sheet account?

  1. 1 Posted by Stuart Beesley ... on 04 Feb, 2023 09:40 PM

    Stuart Beesley (Mr Toolbox)'s Avatar

    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. 2 Posted by David Sackett on 04 Feb, 2023 11:15 PM

    David Sackett's Avatar

    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. 3 Posted by sprimost on 05 Feb, 2023 02:18 AM

    sprimost's Avatar

    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. 4 Posted by David Sackett on 05 Feb, 2023 03:52 AM

    David Sackett's Avatar

    Thank you very much.
        On Saturday, February 4, 2023 at 07:18:05 PM MST, sprimost <[email blocked]> wrote:
     
       
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  5. 5 Posted by David Sackett on 05 Feb, 2023 06:39 PM

    David Sackett's Avatar

    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. 6 Posted by Ben on 06 Feb, 2023 05:53 PM

    Ben's Avatar

    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.

  7. System closed this discussion on 08 May, 2023 06:00 PM.

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