by Aracelli
(Australia)
Publisher: This post was corrected January 2018. The original entries presented were incorrect. See the comments sections.
Hi, I need to record interest earned from a loan to one of our subcontractors: loan was $8000 and we agreed on $800 to be repaid fortnightly plus $33 interest,so $833 will be deducted from his invoice payment each fortnightly. I created a cheque on his name for $8000 on the date the money was loaned that came our of my bank (see pic 1 attached), then i recorded a Journal entry (see pic 2,3,4) for the loan repayment of $800) this reduced the loan amount to $7200 (pic 5) and automatically reduces his payment amount by $800 when paying his work invoice that fortnight (pic 6)
I need to know how to record the $33 interest we are earning, how to make it come up in the deductions/ credits log?
Please help!!!!!
Comments for How to record interest earned on loan to subcontractor
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