Hello,
We provided a business loan to customer with interest rate. So from accounting side we play a bank.
We should record loan principle as well loan interest.
The loan body and interest are not paid yet.
However we are in troubles with corerct record of it and such info doesnt exist in FAQ (very sad).
We created new "Loan receivable" account under "Other Assets" and added there (as Expense in Debit) the loan principle. That's works fine, we see the amount in Balance Sheet, Cash FLow and P&L.
For loan interest that the other company due us we created new "Interest Receivable" account under "Other Assets".
But we cannot correctly record the chain for interest receivables. Here we stucks...
Eg, loan principle is 10.000 USD and interest rate is 5%, also 500 USD p.a.
Can Zoho Team please provide a full chain how we can record this case step-by-step:
- loan interest (that we will get sometime
- how we record as soon loan interest is paid to our bank
Thank you for your help.
Regards,
Yohan