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CREATING A BILL FOR A LOAN REPAYMENT

Question asked by gary wyatt-williams 6 months ago

WHEN CREATING A NEW ACCOUNT CODE FOR A NEW BILL, FOR A LOAN REPAYMENT, WHAT SHOULD I SELECT FOR ACCOUNT TYPE?

MANY THANKS LISA

5 Replies

Hi Gary - no, you have to get the original loan into the books from the original money coming in, then as each payment goes out just explain that to the same loan account, no need for any bills

Bills are to record expenses and supplies.

Hi Lisa,

This would usually be coded to Loans Payable. However, it is advised to double check with an accountant.

Tommy

Hi Gary - not sure why you need to create a bill, normally you would just put the bank repayment direct to the loan account to reduce its balance.

If you create a bill and put it to the loan account, all you are doing is transferring the debt from loan to unpaid bill?

Hi paul

we took out the loan in dec when our accountant was still active. we only took over on jan 1st, so we havnt set up anything for the loan, as it was pre clear books starting. so are we right in that each loan repayment is a bill? many thanks lisa

Hi Gary - no, you have to get the original loan into the books from the original money coming in, then as each payment goes out just explain that to the same loan account, no need for any bills

Bills are to record expenses and supplies.

Hi paul, The loan amount was included in the opening balance figure that i put in when starting clear books, is that what you mean? sorry we dont have much accounting background. Do you mind if I run something else by you? I have been adding all monies in as sales. This includes, pension, tax repayments, loans and our monthly invoices and then anything that has gone out of the accounts as bills, inc loan repayments. Is this correct? Many thanks Lisa

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