How do you tag a loan from the gov?

Accounting
1

I took out a small Covid-relief loan. I’m just wondering how to deal with the bank statement entry.

Thanks for any help as always.
J

2

You can create another income account “Govt Grant”

1 Like
3

Thank you that’s much appreciated!
Like this?
covid-account|690x368

4

The usual way with loans is to represent the loan as a bank account in its own right and tag the money in to your current account as a transfer from the loan account. Interest is money out from the loan account tagged to an expense code, repayments are transfers the other way (from current account to loan account).

For a grant as opposed to a loan you would create a suitable 4xxx income nominal and tag it to that.

2 Likes
5

This topic was automatically closed after 3 days. New replies are no longer allowed.