Hi. Ive been reading through the topics around this but could really do with it simplified in one place as im getting a bit confused. I need to set up a proprietors loan account with an opening balance and then repay a set amount each month from the current bank account. Im not using a bank feed as there’s so few transactions. What journals do I need to create - and can I make the repayment a recurring journal? thanks
Hello @Catllp
Is the director paying a lump sum into the companies bank?
No - the loan to the company is from several years ago on the balance sheet and now its going to be paid back to the individual from the company bank account
Hello @Catllp
You wouldn’t need to use the directors loan account in that case, when the payment is made from the bank just tag it to the loan code, you can also automat this by using an auto tagging rule.
is there a way to make this payment recurring so the system will warn me when its going out?
Also, is the opening balance coded to 1202 or 3100 - must be doing something wrong - when i put a repayment through the bank it’s increasing the loan account…is it debit 3100, credit Suspense? thanks
Hello @Catllp
is there a way to make this payment recurring so the system will warn me when its going out?
How will you be entering your bank transactions (Manually, Importing bank statement or bank feed)?
Also, is the opening balance coded to 1202 or 3100
For an opening balance you would enter it as part of your opening trial balance
Or
You can enter opening balances directly nominal codes (on the loan code for the loan or the bank code for the opening bank balance), when this is done the other side of the transaction is posted to suspense (suspense should be clear when all opening balances are entered)
when i put a repayment through the bank it’s increasing the loan account…is it debit 3100, credit Suspense?
For repayments, when you add a Money in or Money out transaction to the bank, the other side of the transaction initially gets posted to suspense.
When you Tag the transaction, the none bank side of the transaction is moved to your selection (in this case “Something else not in this list > Select the loan code”).
sorry Steve. Still not got it 
Im entering the bank transactions manually.
Here’s the steps ive taken as I want to be able to show the balance owed to the proprietor as reducing as the loan is repaid. So, Im struggling with the correct journal and bank tagging.
So for example, If I put an opening balance in to proprietor drawings of £20,000. The journal ive raised is DR 3100 proprietor drawing £20k, CR suspense £20,000 (or what is the other side of this journal)?
Then bank payment of £1000 and tagged to 3100… through the ‘something else route’?
Im obviously doing something wrong as the 3100 account isn’t reducing the balance when payment made thought the bank and showing as reduced on Balance Sheet.
Thanks
Hello @Catllp
You would not need 3100 and a proprietor drawings account
The easiest way to record this is set up a new bank in the banking screen (Proprietor Drawings)
If you have not done so already record your opening trail balance as a journal. This is your opening balance sheet for the year and includes all the balance sheet balances (your companies worth) at the start of the financial year.
Make sure the loan balance from your trial balance is posted to the Proprietor Drawings bank account (as this is the loan).
Whey you come to make a payment tag the payment as a bank transfer using the Proprietor Drawings account
Is this a limited company with a loan owing to a director, or is it a sole trader business with a balance that the proprietor can withdraw?
The opening balances (assuming you haven’t used QF before) should be entered from your closing trial balance, assuming you have one. If it’s a company with a director’s loan, then the balance due to them should show as a credit under “Director’s Loan Account”. If it’s a sole trader, then the balance will show as something like Capital Introduced or Retained Earnings or Profit and Loss Account b/fwd. Again, it will be a credit.
On entering opening balances, you shouldn’t need to worry about using a suspense account, as the trial balance should balance on both sides.
When you pay the money out of the current account, you tag it as above to “Something else not on the list” and then select the account used to enter the opening balance. This will effectively create a credit entry to the bank account (money going out) and a debit entry against the loan, thus reducing the balance.
If you’re still not sure, please feel free to message me with more details.
Hi
Havent used QF before. It’s an LLP which has 1 rental property so I set up the company as a Landlord. As a director/partner I have made a loan to the company - which is gradually being paid off each month by standing order. There are very few opening balances so Im putting them in manually rather than a full TB.
I have 2 issues - which code to put the opening balance in? - Ive put it in a/c 3100 partner drawings but when I have put the monthly payment thru the bank and tagged to this account it increases the debt not decreases it.
The other issue is how/where to put opening balances for rent deposits- I see that there is 0151 account but how do I journal these in?
I want to assign to each flat so I can see them on the balance sheet. I have already added them to the tenant area.
Thanks
Hi,
The best way to enter your opening balances is via a journal with all the balances in one, so you can make sure it nets out to zero. The exception is the bank account; if you’ve entered the opening bank balance when you set up the bank, the other side will be a credit to suspense (assuming it’s not overdrawn) so the opening journal should have a debit to suspense for the same amount as the bank balance.
Here’s a snip from the help article on entering opening balances manually:
Anything that the company owes to 3rd parties should be a credit (liability) and anything owed to the company should be a debit (asset). Income is a credit entry and expenses are debits.
Money going out of the bank account is a credit, so the corresponding entry to the loan account will be a debit, thus reducing the original credit balance. Check that you have entered the opening balance correctly as a credit to 3100.
I can’t see the chart of accounts for landlords as I don’t have any landlord clients, but generally speaking, current assets are in the range 1000-1999, liabilities in the range 2000-2999 and “Equity”, i.e. partners’ accounts, drawings, capital introduced etc. is in the 3000s. 3100 seems fine to use for your loan.
In terms of rent deposits, I assume these are deposits paid by the tenants which are paid back to them at the end of the tenancy, so again a liability for the company? I’m not sure where 0151 sits, but it looks as though it might be an asset account? It should be a credit balance if it’s money the company owes to tenants, so an account in the range with other creditors (usually 2000s) would seem more appropriate.
Kind regards
Claire
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Thanks for all you responses - Ive made the adjustments you advised. Just need a bit of help on the opening balance journal as I don’t have a trial balance. Ive got three accounts with OBs: 3100 Partner Drawings, 2331 Rent Deposits, 2332 Bounce Back Loan. I don’t know what accounts to put the other side of the journal to (or what code range). Ive put them to Suspense at the moment. Don’t know what to do next to get them out of Suspense for those and the Bank opening balance.
The other side will likely be retained earnings if those are the only accounts with balances on them. Do you have a set of accounts for that date?
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