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Post Info TOPIC: Loans and inputting on SAGE
Jonular


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Loans and inputting on SAGE
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Just working on my year end accounts. I have a loan input in SAGE and I have obtained a statement from the bank showing the balance as at the year end. I have entered the monthly payments each month but I am wondering whether I have to do journal entries with a year end date to get the loan account balance to the amount owing at the end of the financial year.

My loan account needs to show an increase in what is owing by £442.65 to get it to match the year end statement which is the interested added to the loan. So I'm thinking I should debit 2300 (the loan account) and the credit 7903 (loan interest). Is this correct?

(I'm not an accountant just someone having a go myself)

Many thanks

 

 

 

 

 



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RobH


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Nearly right, you just have it back to front. Debit the loan interest which will be a deduction in your profit and loss and credit the loan (2300) which will increase the amount owed (shown as a creditor in the Balance Sheet).

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Rob
www.accounts-solutions.com
Jonular


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Thanks for your reply. Will one day get my head round journals!



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