Hi, as a property landlord I opened my QF account with an opening balance which matched the current bank balance. I have been recording the rental income and mortgage interest repayments for the last few months absolutely fine. However, we have made a capital payment to the mortgage to ultimately reduce the mortgage but I’m not sure where to record it. I know it shouldn’t be recorded as an expense as it will not appear on the P&L account however, I need to record it to show the effect on the bank balance and enable bank reconciliation to be completed. I have read other comments about creating mortgage loan accounts but this has left me totally confused!
Many thanks
Hello @gasnier123
we have made a capital payment to the mortgage to ultimately reduce the mortgage but I’m not sure where to record it.
Do you already have the mortgage balance set up in QuickFile anywhere (on your balance sheet)?
No I haven’t. Until April I was simply using Excel to record income and expenses but then came across QF and thought I’d switch over. Literally, all I’ve done is use the bank balance as the opening balance and just recorded I&Es. Happy to take advice on what I need to set up/correct etc. Many thanks
Hello @gasnier123
Usually a mortgage would be treated very much like a loan from an accounting perspective. My colleague done a quick guide which can be found at the following link:
However, I’m not an accountant, so it may be best to double check with yours just to be safe.
That’s great, I’ve just followed through the steps and I have success! Thank you so much.
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