Money lending with iCash – How to handle that

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Money lending is actually quite simple to handle with iCash. Just a matter of adding the right transactions in the right order, mostly as they happen in real life. Let’s have a look.

Let’s imagine you have to lend some money to a friend and now you are interested in adding the transactions in iCash.

Money lending with iCash - How to thandle that


It is easy but it requires several steps you need to understand well. Let’s see.

Money lending account​


First, you have to create your lending account. Since it is considered an investment you have to create it as a ‘portfolio’ account. Once you are done you have to create a starting transaction from your checking account to that lending account.

That transaction represents the money transfer between you and the borrower:

Money lending with iCash transaction


For this example let say the borrower will give you the money back in 12 months with an annual interest of 5%. The first payment will be entered this way:

Money lending with iCash payment


where ‘Interests’ is an account of type ‘Incomes’ you have to create as well so you can gather the interests.

Why 2 transactions​


It is simple, just to keep track of your incomes. You could simply create a single transaction from the borrower to your Bank account but if you do that you will end with a negative Borrower account and no trace of incomes.

Note that you can group those 2 transactions together to match your Bank statement. Use the ‘Transaction | Group’ menu:

Money lending with iCash grouped transactions


Finally, after payment last 12th you will have the following balance:
Code:
- My checking account: +10,000.00
- My Borrower: 0.00
- Interests: 272.84
Note that we made the calculation with our Loan Calculator Loan Calc.

iCash is a Personal Finance Application available for macOS and MS Windows in 16 different languages. You can get iCash here.

Furthermore, I recommend you to read the following related articles, How to save money with iCash and Personal Finance and the financial planning process.

The post Money lending with iCash – How to handle that appeared first on Tips and tricks.

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