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#2
11-17-2003, 06:44 AM
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 Re: Lending Money - quote - > > I am loaning money to a friend.
I set up an asset account (other) for this very same reason. Cashflow is> > > I want to record a transfer of cash from my savings > > account to my friend and still show that I have an asset > > in the form of a note payable. > > > What steps should I take? > > 1. Transfer cash to an asset account? > > 2. Set up a loan account? (What about the cash outflow) > > > Thanks for your help > I just opened a test file to see how Money treats this: directed through other cash- or bankaccounts. |
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#1
11-17-2003, 03:57 AM
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| Re: Lending Money Setting up a simple cash account works best for me if there are not regular repayments or interest charges. The money remains an asset, just one which is not quite liquid. "Jim" <jmiller177[at]earthlink.net> wrote in message news:03a601c3aca2$244f6bd0$a101280a[at]phx.gbl... - quote - > I am loaning money to a friend. > I want to record a transfer of cash from my savings > account to my friend and still show that I have an asset > in the form of a note payable. > What steps should I take? > 1. Transfer cash to an asset account? > 2. Set up a loan account? (What about the cash outflow) > Thanks for your help |
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11-17-2003, 01:01 AM
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| Re: Lending Money "Jim" <jmiller177[at]earthlink.net> wrote in message news:03a601c3aca2$244f6bd0$a101280a[at]phx.gbl... - quote - > I am loaning money to a friend.
I just opened a test file to see how Money treats this:> I want to record a transfer of cash from my savings > account to my friend and still show that I have an asset > in the form of a note payable. > What steps should I take? > 1. Transfer cash to an asset account? > 2. Set up a loan account? (What about the cash outflow) > Thanks for your help 1) Pay the money from your savings account to your friend. This should lower your net worth. 2) Set up a loan account using the "Lending Money" option, then fill in the particulars. The loan balance should offset the previous payment and restore your net worth. 3) When you record payments received in the loan account register, there will be a drop-down to select which account (checking, savings, etc) received the payment. If you're not charging interest, your net worth should remain neutral. If you're charging interest, your net worth should increase by the amount of the interest. The loan outstanding should decrease by the amount of the principal paid. 4) If you get stiffed, enter a payment in the loan register for the total amount outstanding using the "Other" option. This should zero out the loan and lower your net worth. -- Scott Tyler agent_scotty-at-hotmail-dot-com PS: I loaned money in 1995 and co-signed a loan in the late 1990s for a friend I had known since 1979. In February 1999 he stiffed the bank on the loan, which I then had to pay off (on my 31st birthday, no less. Happy Birthday, Scotty!). I haven't seen him since August 1999. |
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#-1
11-16-2003, 11:31 PM
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| Lending Money I am loaning money to a friend. I want to record a transfer of cash from my savings account to my friend and still show that I have an asset in the form of a note payable. What steps should I take? 1. Transfer cash to an asset account? 2. Set up a loan account? (What about the cash outflow) Thanks for your help |
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| lending, money |
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