Hi There,

I have (maybe) a stupid question but I just can't seem to figure it out.

Say there is an HP with a credit balance in your books. Every month when your debit order goes off you credit bank and debit HP.

Now the owner says listen Mr. Ben that is not related to the company in any way will be driving that vehicle and refund us the payment monthly.

So on refund date you debit bank and credit his (new) loan account. So bank balance is correct, the HP is correct but his loan account is in credit. My problem is the following: To now bring in the loan against mr. Ben, his loan account, but what shall I credit???