You say you have setup a loan as an asset. Is it a Loan account or an Asset
account?

At any rate, you have to transfer the $15k asset value plus the $1,040.23
Other Income:Interest Received (or similar) amount to a cash account
(Checking?).

If answer to question above was Loan:

Use a Loan Payment (received) in the amount of $16,040.23 in the checking
account from the Loan account. If Money figures the interest amount
differently, add another split element to expense or income the difference.

If answer to question above was Asset:

Use a split transaction deposit in the Checking account in the amount of
$16,040.23 split into $15,000 Transfer:Asset account and $1,040.23 Other
Income:Interest Received.

"hwyhiker" <hwyhiker[at]discussions.microsoft.com> wrote in message
news:EBCAC32F-01B6-465F-B5B3-A63E2B50AEBE[at]microsoft.com...
- quote -

On 7/27/04 I loaned out $15,000 as an investment in rehabing a foreclosed
home. I set up the loan as an "Asset" of $15,000. The money was loaned to my
partner at an interest rate of 10% and is to be repaid in a balloon payment
when the home is eventually sold.

On 4/4/05 (a little over nine months) the refurbished home was sold and now
I have received payment of $16,040.23 ($15,000 principal plus accrued
interest of $1,040.23). My problem is that I cannot figure out how to enter
the transaction to (1) close out the loan from the Asset category and (2)
record the deposit of principal and interest which was deposited to my
checking account?

Any help would be greatly appreciated. Thanks.