Financing insurance
Hi We financed our PI insurance last year. I have a question re the unexpired interest account please. Premium paid was $25,650 + gst (plus prof fees ad stamp duty), totalling $30,010 incl GST I set u...
Welcome to the MYOB Community Forum, I hope you find plenty of useful information.
Have a read of the attached Bank Loan and Chattel Mortgage document.
It talks about how to set up a Bank Loan for a motor vehicle and record the Interest and the payments.
Yes it is for a motor vehicle, but the principle is the same for all loans and a loan for funding insurance is treated the same way.
Do a Journal for the original purchase and include everthing in this journal.
Then do Spend Money for the payment recording the Interest as a positive and a negative - this effectively moves the interest from the Liability to the Other Expense account.
Hope this helps.
