Does anyone know how i should record lending money from my company to another person or company, (interest free) ?
I cannot seen to find it in the FAQs and assume this is a fairly normal thing to do.
Hi Paul,
Just create a General Transaction from the Cheque Account to an appropriate asset account. For example, if the loan is to a company director, allocate it to 'Directors Loan Account'. Otherwise you could create a new asset account called something like 'Loan to Fred Jones'. When the loan is repaid, create another General Transaction in the opposite direction.
Regards,
