Bank Reconciliation - Loan Accont

[KPERRY847]

Hi,

I have a quick question hopefully in regards to a business loan account which is setup as a non current liability.

I have a DR and a CR for interest that has been redirected from a business trading account (main account).

I know that i need to go to Banking > Spend Money > Pay from account (Business Loan 2) > Account : Interest paid $352.48

However I am unsure of the other entry as it was redirected from a personal account. I was told to code it to "Unsecured Loan" in the balance sheet.

Can anyone please advise how to do this?

Thank you kindly

Katie!!!!!

Happy End of Financial Year people!

[Steven_M]

Hi @KPERRY847

I would recommend speaking with an Accountant in regards to the accounts and amounts involved in the transaction.

However generally you would process money going into a bank account/loan account via Banking>>Receive Money and have the Deposit to Account being the bank account/loan account. Alternatively if you are spending money from the bank account/loan account you would use the Banking>>Spend Money option.  It does depend on what accounts are involved and how they are being affected.

Once you have confirmed what accounts are involved and how they are getting impacted we can provide some more detailed information in regards to that type of transaction that would be required.

[KPERRY847]

I have the charge / debit that appear in the bank reconciliation however the payments / credit does not appear in the bank reconciliation.

I was advised that the credit should go to an "unsecured loan account" as this is where the fee was redirected from however I do not know how to do it so it can appear in the bank reconcilation..

Should I do:

Banking > Receive Money > Business Loan #2 (deposit to account) and account name select the "unsecured loan account"

?

Thank you for your help would be greatly appreciated 

[Steven_M]

Hi @KPERRY847

For a transaction to appear in the Banking>>Reconcile Accounts Window for a particular account you need to make sure that the transaction has gone to that account. Along with that you will need to make sure that the transaction is dated on or before the bank statement date.

You would need to make sure that the transaction is going to the correct account.  So if you are wanting to have a credit in the bank account i.e the bank account is decreasing you would do a Banking>>Spend Money transaction. Alternative if the loan account is not a credit card or bank account then you want to use the Banking>>Receive Money and have the allocation account as the loan account. Along with that do make sure that the date on the transactions i s corrected and its on or before the bank statement date.

As soon as that has been completed provided that its been recorded to the correct account and the date is correct you will be able to go to Banking>>Reconcile Accounts>>Select the required account and enter in the required date to bring up the transaction as part of your reconciliation.