Accounting question: loans to someone else

[Beth Leonard]

On Sun, Jul 10, 2005 at 11:02:31AM +0100, Maf. King wrote:
> >
> > Clearly the Loan Amount comes from Checking, and the Yearly Payment
> > goes to checking, but I'm having trouble figuring out how and where
> > to put the interest, to cover the fact that the total amount repaid
> > is more than the amount borrowed.  I don't mind doing calculations
> > by hand for the amounts, but what are the transfer accounts?
> >
> 
> A split transaction to give:
> Checking -> Asset:loan  (the repayment)
> Checking -> income:loanInterest  (the "earned" interest)
> 

Thank you!  And Thank you Robin too for the concrete example!  I knew
it had to be something simple like that.  I spent far too long
drawing arrows on a piece of paper and not figuring out that the
repayment could all wind up in my checking account, and the 
source of that money could come from a split transaction.

--Beth 
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+                             Beth Leonard                          +
+       O say, does that star-spangled banner yet wave              +
+       O'er the land of the free and the home of the brave?        +
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