Loans account

Accounting
1

If a business lays out money for another business by making a purchase for them. How do I do this on quickfile?

Secondly, if we lay out for multiple businesses in one purchase what is the correct way to charge them on quickfile for the loan?

2

Hello @betty

Just to clarify, money is being taken out of the business for a purchase which is nothing to do with your business?

If so it would be the same process as a directors loan account

Money out of your current account as a transfer to directors loan (or another similar account for that company)

3

Thanks for your response.
What if money went out of my current account in a single transaction as a loan to a few companies?
How do I split that?

4

Hello @betty

You can tag it as a transfer to a company loans account (a dummy bank account)

Then tag a money out transaction (and tag as transfers) to separate loan accounts (again dummy bank accounts) for each company if you wish to record them separately.

5

Thanks for your reply. Will give it a try and see how it works.

6

Hello @betty

I have outlined a simple example below for you

Example £900 loaned out to 3 companies

Bank transfer from current account to company loans account for £900
1 X £300 transfer out to the loan account for company A, repeat for Company B an Company C

You bank will be out by £900

Each of the company loan accounts will Owe you £300 each

7

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