Accounting for Loans

[Casey Link]

Hi folks,

I'm somewhat surprised I couldn't find and answer to my question by
searching the list archives, so if this has already been discussed,
please point me to the thread(s).

How should I handle a loan (to me from a third party) is deposited to
a bank account?

This is how I naively modeled it (using beancount syntax):

2019-01-01 * "Loaner" "A loan"
Liabilities:Loans -5.00 EUR
Assets:Checking 5.00 EUR

2019-02-01 * "Spend the loan"
Expenses:SomeThing 5.00 EUR
Assets:Checking -5.00 EUR

;; not shown income to Assets:Checking

2019-03-01 * "Loaner" "Payback loan in full"
Liabilities:Loans 5.00 EUR
Assets:Checking -5.00 EUR

Is this correct?

Best,
Casey

[Martin Michlmayr]

* Casey Link <ctl...@binaryelysium.com> [2019-06-05 13:39]:
> Is this correct?

Yes!
--
Martin Michlmayr
https://www.cyrius.com/

[Pete Keen]

That is how I model loans, yes. If the loan charges interest that would be an expense that comes out at the same time the loan payment happens.

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