How do i correctly allocate a mobile phone handset purchased on finance?

Question asked by Caroline Wright 8 years ago

The director has purchased a new handset on finance and i'm a bit unsure how i should allocate this. Do i need to set up a new bank account for the finance company?

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Yes, set it up as a loan account. You then create a bill as usual for the purchase, pay it off using the loan account and then class the monthly repayments as transfers to the loan account. If there's interest being charged you'll need to adjust for that monthly/quarterly/annual to suit your needs.

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8 years ago

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