How do you manage personal "receivables"?

[Rafferty Uy]

Hm... I never thought of it this way. Looks like I have to reorganize my
transactions.

Thanks everyone!

Rafferty D. Uy
Software Engineer @ ease solutions Pte. Ltd.
MBA Student @ National University of Singapore

"Being a CEO is like answering a call to bring the organization to a better
place than where you found it."
~ Ed Ludwig (CEO of Becton, Dickinson)


On Sun, Feb 1, 2009 at 8:48 AM, Doug Laidlaw <laidlaws at hotkey.net.au> wrote:

> I would do it the same way.
>
> Is the question really: "I don't want to set up a separate Debtor account
> for
> each loan, because they are short-term."?  They probably won't stay on the
> books until statement time, or if they do, you don't want to send reminders
> to friends.  So create a debtor called "Miscellaneous loans" or similar to
> hold them all. The difficulty then is that it is hard to dissect, and see
> who
> has paid and who hasn't.  I had this problem accounting for bills sent to
> Legal Aid.  In retrospect, I should have kept them separate, but then the
> person I did the work for, would show as the default debtor.  All that is
> now
> history.
>
> The loans don't sound to me like business transactions, but private ones,
> except that they do generate some income for the business.  This is the
>  kind
> of question I would put to the accountant who does your tax.
>
> Doug.
> On Sunday 01 February 2009 12:54:37 am Fred Frigerio wrote:
> > If there is any interest, then you have an income. Otherwise you are
> moving
> > a liquid asset (money) into a less liquid asset (a loan).
> >
> > On Sat, Jan 31, 2009 at 6:41 AM, Geert Janssens
> >
> > <janssens-geert at telenet.be>wrote:
> > > On Saturday 31 January 2009, Rafferty Uy wrote:
> > > > Hi,
> > > >
> > > > Just wondering how you guys manage temporary (and extremely short
> term)
> > > > loans by friends?
> > > >
> > > > What I did was to create an Accounts Receivable and Account Payables
> > > > account.
> > > >
> > > > If my friend borrows money from me, I'll count it as an expense and
> > > > place the entry in accounts receivable. Then when they pay me back, I
> > > > split the AR transaction and enter as income the amount payed back.
> But
> > > > I'm not
> > >
> > > sure
> > >
> > > > if this is the correct way... because the date that the money is
> payed
> > >
> > > back
> > >
> > > > is no longer accurate (because I'm editing an old transaction).
> > > > However,
> > >
> > > if
> > >
> > > > I do it separately, it can be confusing which receivable is payed and
> > >
> > > which
> > >
> > > > receivable isn't.
> > > >
> > > > What's the recommended way to do this?
> > >
> > > Borrowing money has nothing to do with income or expense.
> > > I would use this transactions:
> > >
> > > * 100.00 borrowed to a friend on 10/01/2009:
> > > Date            Description     Account                         Amount
> > > 10/01/2009      Friend X        Assets:Cash                     -100.00
> > > 10/01/2009      Friend X        Accounts Receivable     100.00
> > >
> > > * Friend pays me back at 21/01/2009:
> > > Date            Description     Account                         Amount
> > > 21/01/2009      Friend X        Assets:Cash                     100.00
> > > 21/01/2009      Friend X        Accounts Receivable     -100.00
> > >
> > > If you wish to know how much Friend X still owes you on date Y, you can
> > > create
> > > a transaction report on the Accounts Receivable account, and group/sort
> > > on description.
> > >
> > > Alternatively, if you have friends you regularly borrow money to, and
> you
> > > want
> > > to track these friends separately, you can create subaccounts of
> > > A/Receivable
> > > for each friend and use these subaccounts in the above transactions.
> > >
> > > Hope that helps.
> > >
> > > > Thanks!
> > > >
> > > >
> > > > Rafferty D. Uy
> > > > Software Engineer @ ease solutions Pte. Ltd.
> > > > MBA Student @ National University of Singapore
> > > >
> > > > "Being a CEO is like answering a call to bring the organization to a
> > >
> > > better
> > >
> > > > place than where you found it."
> > > > ~ Ed Ludwig (CEO of Becton, Dickinson)
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