set up third party loan

Question

Loaning money to third party how to set up and record payments received

Thank you

DuncanS · Answer

@slkelly71@Doreen_P

I understand the Entity is lending money to a 3rd Party.

This would be an Asset. A Current Asset if the term of the Loan is less than 12 months.

Interest may be charged.

Suggest sending a Statement (say every 6 months).

Duncan

Doreen_P · Answer

Hey @slkelly71,

To set up and record loan payments received, follow these steps:

* Create a liability category for the loan.
* Record the loan receipt when funds are received.
* Log the loan repayments.

For detailed information, check out this link.

Cheers,

Doreen