Car Loan Question

[jcard21 xxxxxxx]

On Sun, Feb 16, 2014 at 9:59 PM, Youssef Ltaief <ltai0001 at yahoo.com> wrote:
> Hello
> my situation is as follows. I have a pending car loan that I correctly setup up a couple of years ago. A few months ago I decided to give the car to my sister but keep paying the loan. She is reimbursing me for the monthly payments.
> I use the payments I make against liability:principal and expense:interest. How would I record the reimbursements my sister pays me every month?
> Any help is appreciated

Accounting records the movement of money.

Here is how I would record the auto loan payment transactions:

1) When your sister pays you, from within your Asset:Bank account
register where you deposited (or will deposit) the money, add a
transaction to debit your Asset:Bank account (split1), and credit one
of your Income accounts (split2).

2) When you pay the car loan, from within your Asset:Bank account
register, credit your Asset:Bank account for the amount of the
check/pymt (split1), debit your Expense:AutoLoanPrinciple account
(split2), and debit your Expense:AutoLoanInterest account (split3).

-- 
jcard21