I find info on here about Director Loans and loans taken out by the company but how do I record Loans given by my company to a third party company with interest paid in (at beginning of term) and loan repayment back into my company at end of term? It’s basically an investment. I need to tag the imported bank statements. Do I create a Customer or Supplier to whom the loan is given? Do I create a Loan account similar to the Director Loan account? I’m assuming I do but I’m hoping someone will clarify this before I go ahead and do this.
You can create new codes call then Investment (under current assets) and Income from investment under P&L
Forgive me but how do I create new codes?
Am i right in thinking I create a Loan account even though I’m not loaning to a bank but to another company.
You can create new accounts from Reports> Chart of accounts> create new account
Is this instead of creating a Loan Account for the Company I’m investing in (giving loan to)?
When entering new code ‘Investment’ under “Assets & Liabilities” what do I enter for Sub-Category? It’s a one year loan. Would that be ‘Short Term Creditors’ or ‘Long Term Loan’ or maybe something else?
Also, when I enter “Income from investment” under “Capital & Reserves” what do I put as sub-category?
Sorry for all the questions, I just want to be sure I get this right at the beginning rather than having to go back and change things.
‘Investment’ under “Assets & Liabilities” with Sub-Category Debtors
“Income from investment” under other sales
Thanks for that. I guess I could have created a loan account but I’ve manually created the new accounts instead as you suggested above.
Thanks for your help.