Hi Here is another example for the Guide : Loan chapter. Any comments?
/Bengt (based upon https://lists.gnucash.org/pipermail/gnucash-user/2005-July/014219.html) A personal loan to a friend This example will show how to track two personal loans * A loan of 1,000 USD (default currency) to Peter * A loan of 20,000 EURO (non default currency) to Mark. We start with the first loan to Peter. > Assets:Bank:USD (USD) > Assets:Money owed to you:Peter (USD) > Income:Interest Income:Peter (USD) > Equity:Opening Balances:USD (USD) > <Screen shot> Peter's loan details: Pinciple Amount - $1,000 Term - 1 years with 12 payments per year Annual Percentage Rate: 5% Monthly Payment: 85.61$ (Most spreadsheets have a built in function to calculate the payment. In Open Office it is a Financial Function called PMT) <screen shot of PMT> When the loan are first made, the accounting entry will be: Increase Decrease Assets:Money owed to you:Peter $1,000 Assets:Bank:USD $1,000 <screen shot> When the first payment is received: Outstanding loan amount this period = $1,000 Payment per month = $85.61 Payment breakdown 5%/12 * $1,000 = $4.17 Interest $85.61 - $4.17 = $81.44 Principle Increase Decrease Assets:Money owed to you:Peter 81.44 Income:Interest Income:Peter 4.17 Assets:Bank:USD 85.61 The balance on Peters loan is now $1,000 - $81.44 = $918.56 <screen shot> When the second payment is received: Outstanding loan amount this period = $918.56 Payment per month = $85.61 Payment breakdown 5%/12 * $918.56 = $3.83 Interest $85.61 - $3.83 = $81.33 Principle Increase Decrease Assets:Money owed to you:Peter 81.33 Income:Interest Income:Peter 3.83 Assets:Bank:USD 85.16 The balance on Peters loan is now $918.56 - $81.33 = $837.23 <screen shot> As you can see, the amount received in interest and principle changes each month. The Loan to Mark will be according to the same principle. The key thing with this loan, is that it is made in a non default currency. But we use the same account structure as before, but ensuring that each account's currency is the same currency as the loan is made in (Euro) Assets:Bank:EURO (EURO) Assets:Money owed to you:Mark (EURO) Income:Interest Income:Mark (EURO) Equity:Opening Balances:EURO (EURO) Mark's loan details: Pinciple Amount - 20,000 Term - 5 years with 12 payments per year Annual Percentage Rate: 6% Monthly Payment: 386.66$ The rest follows the previous example (loan to Peter) _______________________________________________ gnucash-devel mailing list [email protected] https://lists.gnucash.org/mailman/listinfo/gnucash-devel
