Hi,
if I am starting a sister company and lend the start up cash from my initial company, with an agreement for the sister company to repay the loan over 3 years, how do I set up the loan payment to the sister company and loan repayments from that sister company to repay my initial company, as they will be non profit transactions and two separate companies

Thanks in advance

Hi Mac,

So let's say Company A lends Company B the money to be repaid over 3
years. In Solar Accounts you would set up 2 companies:

In the Company A Solar Accounts file you create a new asset account called
'Loan to Company B' and then a General Transaction from the Cheque Account
to this new asset account for the amount of the initial loan. When it
receives repayments you record another General Transaction in the opposite
direction (ie. from Loan to Company B to Cheque Account).

In the Company B Solar Accounts file you create a new liability account
called 'Loan from Company A' and a General Transaction from this account to
the Cheque Account. When this company makes repayments you record another
General Transaction in the opposite direction (ie. from Cheque Account to
'Loan from Company A')

Hope that helps!

Mark McLaren
Solar Accounts

Hi Mark

Thanks for the quick reply.

From your answer does this mean I set up two companies in/under the same solar account??

Or have two completely different solar accounts.

The new company has been started by my wife (company B), but has no ties to my company (company A)
Except while the loan is running, company A is a limited company while company B is sole trader

Next week we were going to get solar accounts installed on her Mac to start off her accounting??

Hope that makes sense

Mac

Hi Mac,

Yes with Solar Accounts Online you can set up 2 businesses under one user
account. To set up a second business click menu File > New > Business >
Set Up New Business. Note however that this will increase your monthly
subscription fee.

Cheers Mark

Thanks for your help

You have a cracking day

Best
Mac