Hi.
When my girlfriend opened her sole trader business I lent her 15000. Now she earn money and she started giving back on monthly basis. I took loan for 5 years so I told her to repay the same amount (273 pounds) every month. How to deal with this. Can she send money straight from business account to mine? Now she sends to her private bank account and next to me.
Yes she can send money from her business account to yours. Is she paying interest as well on loan? i presume yes then initially she would tag money in bank to loan account and any repayments would be tagged to loan a/c as well. If any interest involved that would be journalised at year end
Dr Interest on loan
Cr loan a/c
Hi. Faraday.
I gave her 1500(in few transfers) and I want her to return 15000 in rates(now regular monthly) . There is no interest on it. How to record my transfer(s) and how to record all payments to me?
payments from you to her bank a/c would be tagged to 2300 Loans a/c and from her to you would be tagged to 2300 Loans a/c as well.
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Thank you.
I tested and it looks like it has no input on tax. It looks like it is mainly for myself to know how much I own
Regards