I'm looking for some input on how to book the following.
Let's say I've loaned someone $1,000. Each month I receive PIK interest
<https://www.investopedia.com/terms/p/paymentinkind.asp> on that note in
the amount of $10.00. I make an entry as follows:
2023/01/01 * Note 1 PIK Interest
Income:Interest:PIK Interest -10.00 USD
Assets:Notes:Note 1
Even though I haven't received this money as cash, I choose to include this
PIK interest in my tithes calculation:
= /^Income/
(Liabilities:Tithe) 0.10
When the note eventually pays off, my CPA needs to know that all of this
PIK interest has now been fully realized. I could back the accumulated PIK
interest out of the "Income:Interest:PIK Interest" account and put it into
an "Income:Interest:PIK Interest Realized" account, but this messes up my
automatic tithes calculation. My other thought is to add the realized
interest to a virtual "Income:Interest:PIK Interest Realized" account, but
now my income reports are off unless I remember to exclude one of the two
income accounts depending on whether or not I want a cash basis view or
accrual view of my income.
Anyone have thoughts on a good way to handle this?
Thanks
JL
--
---
You received this message because you are subscribed to the Google Groups
"Ledger" group.
To unsubscribe from this group and stop receiving emails from it, send an email
to [email protected].
To view this discussion on the web visit
https://groups.google.com/d/msgid/ledger-cli/ad866fbd-0601-4717-9f92-7a9fd51ec3aen%40googlegroups.com.
