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Dealing with a loan on sage

  • 22-03-2010 01:26PM
    #1
    sage4me
    Registered Users, Registered Users 2 Posts: 79 ✭✭


    Hi all,

    We received a bill from our accountant and have decided to get a loan to pay over 11 installments. I didn't realise we were going to be getting a loan to pay this bill so :

    How do I deal with it is sage.

    Do I now Under the nominal legder code 2102 (Short Term Liability) enter the amount of the loan, but break it out into Administration Fee's / Interest etc - with a recurring bank payment monthly from 1200 to this nominal code.

    I have already CR the Supplier and Dr Accountancy Fee's and the VAT, but am not sure how to show that the account is paid.

    I am missing something simple here (I know) and I just can't think... sorry if it seems a stupid question

    Thanks for your help.


Comments

  • #2
    LashingLady
    Registered Users, Registered Users 2 Posts: 314 ✭✭LashingLady


    I use Tas but I am sure they are quite similar

    I know that I used (or created) a Bank Loan account which I credited with the amount BORROWED then debited the bank with the same amount. So you can pay the supplier account out of the bank as normal.

    I then posted the repayments as a recurring monthly amount between these two accounts.

    I posted the interest amounts quarterly when they were applied by the bank by crediting the loan account and debiting the bank interest payable account on the P&L.


  • #3
    seven-iron
    Closed Accounts Posts: 451 ✭✭seven-iron


    If your paying your accountant a fair amount you should be getting him to do it????


  • #4
    sage4me
    Registered Users, Registered Users 2 Posts: 79 ✭✭sage4me


    Hi Seven-iron,

    You teach a man to fish or you can fish for him...which would be better ?

    All I need to show in the books is that our accountant has given us an invoice and we have got a loan to pay for the invoice, but the amount of the invoice has not come out of our bank account, and I need to acount for it.

    I am just asking how do I account for it - Not just for the accountant - but for myself too.

    Thanks


  • #5
    someyoke
    Registered Users, Registered Users 2 Posts: 94 ✭✭someyoke


    Think you might be mixing up the loan account with the amount owed to the accountant.

    Once you pay the accountant through the bank you will debit the supplier account thus showing the bill as being paid.

    The loan will remain outstanding and as you've said will be reduced by the repayment through the bank each month allowing for interest owed.


  • #6
    Bookkeeper09
    Registered Users, Registered Users 2 Posts: 266 ✭✭Bookkeeper09


    Did money actually come into your bank account or was this paid directly to the accountant?

    If it was paid directly to the accountant what I would do is post a journal to the creditors ledger:

    DR Creditors ledger
    CR bank Loan liabilty
    DR Loan interest in P&L with the difference

    then as each monthly repayment is made:

    CR bank account
    DR bank loan liability

    If the proceed from the bank loan was paid into your bank account and then paid by you to the accountant I would record as follows:

    DR Bank account with loan drawdown
    CR bank loan

    CR Bank account
    DR Creditors ledger, paying the accountant as you would normally recored a payment by cheque

    Loan repayment will be same as above


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