Guide: Sample for Loan chapter

[Derek Atkins]

So, um...  where are these screen shots?

-derek

Quoting Bengt Thuree <bengt at thuree.com>:

> Hi
> Here is another example for the Guide : Loan chapter.
>
> Any comments?
>
> /Bengt
>
> (based upon
> https://lists.gnucash.org/pipermail/gnucash-user/2005-July/014219.html)
>
> A personal loan to a friend
>
> This example will show how to track two personal loans
> * A loan of 1,000 USD (default currency) to Peter
> * A loan of 20,000 EURO (non default currency) to Mark.
>
> We start with the first loan to Peter.
>
>> Assets:Bank:USD (USD)
>> Assets:Money owed to you:Peter (USD)
>> Income:Interest Income:Peter (USD)
>> Equity:Opening Balances:USD (USD)
>>
>
> <Screen shot>
>
> Peter's loan details:
> Pinciple Amount - $1,000
> Term - 1 years with 12 payments per year
> Annual Percentage Rate: 5%
> Monthly Payment: 85.61$
>
> (Most spreadsheets have a built in function to calculate the payment.
> In Open Office it is a Financial Function called PMT)
>
> <screen shot of PMT>
>
> When the loan are first made, the accounting entry will be:
> 				Increase	Decrease
> Assets:Money owed to you:Peter    $1,000
> Assets:Bank:USD                   		$1,000
>
> <screen shot>
>
> When the first payment is received:
>
> Outstanding loan amount this period = $1,000
> Payment per month = $85.61
> Payment breakdown
>  5%/12 * $1,000 = $4.17  Interest
>  $85.61 - $4.17 = $81.44 Principle
>
> 				Increase	Decrease
> Assets:Money owed to you:Peter    		81.44
> Income:Interest Income:Peter			4.17
> Assets:Bank:USD                   85.61
>
> The balance on Peters loan is now $1,000 - $81.44 = $918.56
>
> <screen shot>
>
> When the second payment is received:
>
> Outstanding loan amount this period = $918.56
> Payment per month = $85.61
> Payment breakdown
>  5%/12 * $918.56 = $3.83 Interest
>  $85.61 - $3.83 = $81.33 Principle
>
> 				Increase	Decrease
> Assets:Money owed to you:Peter    		81.33
> Income:Interest Income:Peter			3.83
> Assets:Bank:USD                   85.16
>
> The balance on Peters loan is now $918.56 - $81.33 = $837.23
>
> <screen shot>
>
> As you can see, the amount received in interest and principle changes
> each month.
>
> The Loan to Mark will be according to the same principle.
> The key thing with this loan, is that it is made in a non default
> currency.
> But we use the same account structure as before, but ensuring that each
> account's currency
> is the same currency as the loan is made in (Euro)
>
>
> Assets:Bank:EURO		(EURO)
> Assets:Money owed to you:Mark	(EURO)
> Income:Interest Income:Mark	(EURO)
> Equity:Opening Balances:EURO	(EURO)
>
> Mark's loan details:
> Pinciple Amount - 20,000
> Term - 5 years with 12 payments per year
> Annual Percentage Rate: 6%
> Monthly Payment: 386.66$
>
> The rest follows the previous example (loan to Peter)
>
>
>
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>



-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
       warlord at MIT.EDU                        PGP key available