Outgoing personal loan clarification

[Adrien Monteleone]

I think the usual structure there would be:

Assets:Current Assets:Other Current Assets:Short Term Loans

You could then have separate accounts under Short Term Loans for each person you’ve loaned to.

And as noted by others, income accounts do not enter the picture. This is not new money. An asset is being returned to you. It’s just an asset transfer from the loan back to cash. (or checking account, etc.)

Regards,
Adrien

> On Nov 2, 2017, at 3:19 AM, Tony Vanson <tonyvans70 at gmail.com> wrote:
> 
> Hi all,
> First time here, so please excuse my accounting ignorance.
> Whilst I understand some of the GnuCash basics, I have a problem which I’m hoping I can get some help on.
> I’m currently residing overseas and we employ a staff member.
> This person has asked for a personal loan, which I have given, paid by cash from my bank account
> I shall use generic amounts for the details.
> 
> This person is paid a total 600.00 per month, split 300.00 paid on the 11th and 25th of each month.
> The loan is for 2000.00 with 250.00 repayable on the 25th of each month for 8 months. I do not charge interest.
> So on the 11th of the month she receives 300.00 and on the 25th 50.00 cash with 250.00 being for the loan repayment.
> My question is: how do I enter this in GnuCash?
> I already have a bank account and have set up a ‘money owed’ account as an asset which shows the 2000.00 owing.
> I have also set up a ‘loan repayment’ account as income.
> Hopefully someone can advise me the particular steps I need to follow for what entries go where, particularly in regards to the 25th of the month items.
> Cheers
> 
> 
> Sent from Mail for Windows 10
> 
> 
> 
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