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Thread: How to create Loan Accounts in Pastel

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    How to create Loan Accounts in Pastel

    Hi
    An employee bought tyres using the company supplier. A monthly deduction was to be made from his salary, however he is receiving his full salary and is paying the company back monthly with his own instalment.
    I have been asked to allocate his payments received for that particular invoice amount to a loan account in his name thereby reducing his loan account monthly until the debt is settled.
    I am not sure how to go about this
    Please help

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    Diamond Member Neville Bailey's Avatar
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    When you receive the invoice from the supplier, allocate the amount to the employee's loan account instead of to an expense account. You will have created a loan account as a Balance Sheet item.

    When the employee pays the monthly instalments to the company, allocate the payments to the loan account, which will then credit the debit balance on the loan account.
    Neville Bailey - Sage Pastel Accounting Consultant
    www.accountingsoftwaresupport.co.za
    neville@accountingsoftwaresupport.co.za
    IronTree Online Solutions

    "Give every person more in use value than you take from them in cash value."
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    Hi Neville

    Thank you for the feedback.

    What Financial Category will the staff loan account be. Will it be Other Current Assets

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    Diamond Member Neville Bailey's Avatar
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    Correct.
    Neville Bailey - Sage Pastel Accounting Consultant
    www.accountingsoftwaresupport.co.za
    neville@accountingsoftwaresupport.co.za
    IronTree Online Solutions

    "Give every person more in use value than you take from them in cash value."
    WALLACE WATTLES (1860-1911)

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    Hi Neville,

    Thank you for your feedback. The only account I have currently under Other Current Assets. Can I create a sub account under Sundry Customers for the loan account

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    Diamond Member Mike C's Avatar
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    Hi Sheena

    Can I create a sub account under Sundry Customers for the loan account
    That's where ours has been put.
    No act of kindness, no matter how small, is ever wasted. - Aesop "The Lion and the Mouse"

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    A staff member received an overpayment for his salary which needs to be allocated as a loan.
    Do I capture the entry to Salaries and Wages and then pass a journal debiting the loan account and crediting Salaries and Wages
    The loan amount has not been allocated to a loan account for him as yet

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