Clarification

[AlinaM]

Good morning,
I require a bit of clarification if possible...
Last financial year was close with a mortgage loan of over 3 mil. A contract with a lawyer at a purchase of a second building has made this: clear the loan and reopen a second one. While clearing the loan from feb to may 2014 there were interest payments which did not change the amount of the loan at all, its sum. My question toward you is how do I enter this in sage please?
The sums are coming from the lawyers directly in the loan account and only the interest has been taken from the company account.
Should I set up the lawyers as an account in sage line 50? And if so, it the account to be seen in the bank section or just in the nominal ledger?

I look forward to your opinions.

Many Thanks and hope you are having a good day.

Alina

 

[AlinaM]

Good morning,
I require a bit of clarification if possible...
Last financial year was close with a mortgage loan of over 3 mil. A contract with a lawyer at a purchase of a second building has made this: clear the loan and reopen a second one. While clearing the loan from feb to may 2014 there were interest payments which did not change the amount of the loan at all, its sum. My question toward you is how do I enter this in sage please?
The sums are coming from the lawyers directly in the loan account and only the interest has been taken from the company account.
Should I set up the lawyers as an account in sage line 50? And if so, it the account to be seen in the bank section or just in the nominal ledger?

I look forward to your opinions.

Many Thanks and hope you are having a good day.

Alina

No one? Did I say something really stupid or what?

 

[ethical PR]

You only posted just over an hour or so ago, have a little patience

 

[AlinaM]

You only posted just over an hour or so ago, have a little patience

Thank you Ethical PR I am just under pressure which is not helping.

 

[Walkol]

I'm a little confused as to the process.

As I understand it....

Your company had a loan.
Interest payments were made for that loan from your company bank account.
No payments were made to reduce the loan, purely the interest
You want to know how to enter this on sage

 

[john1989]

Thank you Ethical PR I am just under pressure which is not helping.

You have previously said you are an employee for an accountancy practice. Why not ask someone within that practice?

 

[AlinaM]

I'm a little confused as to the process.

As I understand it....

Your company had a loan.
Interest payments were made for that loan from your company bank account.
No payments were made to reduce the loan, purely the interest
You want to know how to enter this on sage

Hi @Walkol ,
Company purchased a building year ago, in FEB 14 there were over 3 mil left to pay the loan.
They used a lawyer to purchase the second the building. The lawyer cleared the loan and reopen a new one for the new building directly through them. The interest of the old loan was paid from the company account. First loan was with a bank, accounts were switched, loan cleared and new loan with the new bank using the lawyers.
PS. I had the lawyers set up as a supplier now I have moved them as a general account nominal as it was requested by my boss and I am stuck with 2 invoices as I do not know how to enter them. I tried to use the recurring entry from the bank using a journal credit to post the invoice I entered the date and set up one recurring posting and it is not appearing.
This is what my situation is so far....

 

[AlinaM]

You have previously said you are an employee for an accountancy practice. Why not ask someone within that practice?

@john1989 I went for a local college and I had 2 week of practice... They stopped keeping in touch with me. Were i used to be self employed part of admin work was to prepare everything to be sent to the accountants to prepare VAT and Year end and I used to solve the queries because I was raising the invoices, payments and receiving the payments as well.
Situation went ugly in the company and I left after four years at the beginning of this year and I could not call them because I used my medical reasons to leave. My move was good at the time because now lets say the partners are accusing each one of stealing money from a period of before I started working....
I was called to return to work as i was doing a good work and I will always have my desk over there but I have said college and health first. ...

 

[Walkol]

Sorry, I may be being slow here, but maybe this could help.

Normally I would expect to see this....

Loan will be a creditor on the b/sh for the amount of the loan (either in one account or a short term for amounts <1yr and long term >1yr)
Each payment made to the loan will be a bank payment to the loan account
The interest on the loan each month can be entered via a journal CR in the loan account, DR the P&L account.

Unless I am not following, I am unsure why invoices/suppliers are coming into the equation. And it should not matter if it is a loan with the bank, lawyer, or bob from the pub down the road.

 

[AlinaM]

Sorry, I may be being slow here, but maybe this could help.

Normally I would expect to see this....

Loan will be a creditor on the b/sh for the amount of the loan (either in one account or a short term for amounts <1yr and long term >1yr)
Each payment made to the loan will be a bank payment to the loan account
The interest on the loan each month can be entered via a journal CR in the loan account, DR the P&L account.

Unless I am not following, I am unsure why invoices/suppliers are coming into the equation. And it should not matter if it is a loan with the bank, lawyer, or bob from the pub down the road.

@Walkol thank you for your response, so far I have found the interest transaction to I have done a bank payment to nominal 7903 .
When I was handed over the folder with invoices I had this company and the invoice was with VAT and for the amounts which i have entered under Professional Fees as this what I concluded from looking at the invoice. That was at the beginning of the month. Only yesterday when I handed over the TB and Aged Creditors to be advised they are layers and must be used as an account not a supplier. Went to college after work and did not had time to make any further checks about this.
I have a long excel list with clarifications pending were I had the interest transaction which is now moved from the account to the nominal code.
Now I need to find out how and when the lawyers paid everything because it looks to me so far I need to start the account on minus for the loan and with time to bring it to zero... Even this a major maybe , the reason I am not being told more information is because they do not want me to make any mistakes...

Thank you for your help and time!