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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.
It is easy but it requires several steps you need to understand well. Let’s see.
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:
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:
where ‘Interests’ is an account of type ‘Incomes’ you have to create as well so you can gather the interests.
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:
Finally, after payment last 12th you will have the following balance:
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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Let’s imagine you have to lend some money to a friend and now you are interested in adding the transactions in iCash.
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:
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:
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:
Finally, after payment last 12th you will have the following balance:
Code:
- My checking account: +10,000.00
- My Borrower: 0.00
- Interests: 272.84iCash 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.
Continue reading...