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Post Info TOPIC: Recording a Franchise in the Accounts
Elaine R


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Posts: 359
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Recording a Franchise in the Accounts
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Hi,

I am doing the books for a client.  He has purchased a franchise and is paying it off with a loan through Tesco bank.

How do I record this?  I know it's a loan so need to create a loan account under liabilities but how do I record the other side?

Sorry to sound thick as I know it's probably straight forward but need some reassurance.

 

Dr   Assets

Cr   Loan (Liability)

 

Elaine



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E Roscoe
FoxAccountancyServices


Expert

Status: Offline
Posts: 2021
Date:
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Hi Elaine

It depends.

If you take out a loan and that advance is paid into the current account, that's the first step - recording the T9 bank receipt and posting it to 23XX

Then, you would have a supplier invoice for the Franchise cost - this allows you to separate out anything necessary (sometimes stationery is part of the deal, so doesn't go to FA)

Clear with supplier payment from bank - assuming a cheque or BACS has then been issued.



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