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Account outside double-entry

Hi,

So I received a loan and I would like to create this loan’s control account outside double entry so I can control exactly how much of the loan I have spent and on what.

Obviously, I will create the loan account to account for the receipt of the loan and subsequent repayments and interest.

But then, when I buy something and want to show it is the loan money I used for it is what I would like to use the control account to be able to show where the loan was spent.

Others may have a different answer but the easiest way would be to do this.

Create yet another bank account and call it loan purchases or whatever.

Any purchases made via your business account using loaned money, mark as a transfer to that new account. Then in the new account create a money out transaction for the purchase and tag it to the purchase receipt.

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You could maybe use a project tag to label purchases that have been paid with loan funds, but this only really works if you always pay whole purchases with loan funding (rather than half loan money and half savings or whatever) and project tags only really work with purchases, not things like wages that don’t go through the purchases system. For non-purchase expenses you’d have to apply an adjustment to the project tag by hand.

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