I have cash surplus in my business. I have given part of the cash surplus to external businesses as loan for some interest rate. how do i book this transaction?
Set up a new asset account for the loan and an income account for the interest (if you don’t already have such). When you extend the loan, Spend Money from a cash or bank account and allocate to the loan asset account. When you receive payments, split the receipt, allocating principal repayments to the asset account and interest to the interest income account.
Thanks for this suggestion. Is there any plan for future enhancements to the product to incorporate basic loan functionalities like capturing interest rate, maturity date, redemption of loan or rollover of loan etc?
Manager is an Accounting not Finance software. There are plenty of Loan Amortisation calculators available on the internet.
Agreed. Thank you so much.