Question regarding loan that was paid into a personal account

1

Hello people,

I am registered as a sole trader and my loan was provided via a government scheme and was paid into my personal bank account. The repayments will also be from my personal account. This situation has me a little confused in regards to inputting the data to manager.

My question is, can i treat this as a normal loan?

For example, if i open a liability account for the loan amount, an expense account for the interest/charges and as my repayments become due transfer the funds from my business account to my personal account for the amount due. So in manager i would record the repayment transactions by posting as credit to bank account/debit liability account and credit bank account/debit to interest/charges account.

Would this be acceptable or does the loan payment/repayments from my personal account affect the way i would have to record things?

2

Yes that is the general thrust.
When you transfer the loan deposited into your personal account into the business account, do a Receive Money and use the Loan Liability account as mentioned.
For the repayments do a single Spend Money which can combine both the loan and charges by putting each component on separate lines (add a line)

3

Thanks Brucanna for such a fast response. I thought as much but needed to verify :slight_smile:
Your a star!