Loan Repayment query

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camille
camille Registered Posts: 11 New contributor 🐸
in AAT Level 4 (Level 8 in Scotland)
I am stuck in regards to a client's account. An item was purchased in last years account and included as a fixed asset.
Now the loan that was taken out to purchase the item is debiting the bank via D/D. Where would I show these loan repayments in sage in the chart of accounts???

Please help!!??:::confused1:

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  • RichardH
    RichardH Registered Posts: 5 New contributor 🐸
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    Hi Camille
    I assume the asset was paid for via the bank in the first place. If you have received money from the loan company to cover this then you can Dr. Bank Cr. Loan in Other Creditors. The DD will include interest so the monthly payment is Dr. Loan(Capital amount), Dr Interest Paid (Interest amount) and Cr. Bank. I hope this helps.

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