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Add an asset loan
Note: This section will be applicable only to existing Funds being migrated to Mclowd. New funds can only extend asset loans after the Start Date and these should be entered in via BANK | Add Loan Asset Account.
If your Fund has extended a loan to a third party which will accrue interest income and must be repaid to the Fund, choose ADD NEW LOAN ASSET ACCOUNT. The following screen will be displayed:
Note: Enter only loans that will continue after you start using Mclowd for SMSF accounting during the Setup process.
In the Owner field, choose the Account that extended the loan. If loan funds were extended from a specific Member Account, and other accounts will not share the interest income earned, select the correct Owner Account. (Refer to Segregated Assets.)
Give the account a name that is unique and will be easily recognised when posting repayments or interest income. You may wish to use the borrower’s name.
The Setup Date should be the date the loan contract was originally signed, or the date the funds were transferred to the borrower.
The From Account is the cash account (bank or liability loan) from which funds were drawn to pass to the borrower.
Enter the Balance owed on the loan (including any interest and charges accrued prior to the Fund Start Date) as at 30 June in your immediate prior Year (i.e the day prior to the date on which you will begin recording fund transactions). If you are going to start recording transactions from 1 July 2019, then enter the balance owed as at 30 June 2019.
When you save your Loan Asset, it will appear in the list on the Bank Accounts page.