How to enter transaction involving repayment of a personal loan?

How do I set up this transaction using Quicken 2004 H&B:

  1. In 2004 Person A loans a blood relative 00 as a personal loan.

  1. A. In 2005 Person A opens a new business in a leased retail space. B. In 2005 the blood relative in 1. above does repair work on the leased retail space (painting, wallboard, flooring, etc) for which he values the time as 00 labor. C. The blood relative is paid 00 cash and the loan is reduced to zero for a total of 00.

  2. Person A wants to include 00 under "Repairs".

How would the $1500 cash and $3000 loan repayment be handled given that the $1500 came out of the business checking account but the loan repayment was repayment of a personal loan?

Reply to
Arnie Goetchius
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Using your numbering system:

  1. This should be shown on Person A's books as an Asset account. It's not appreciably different that if a savings account had been opened.

2.A. There's no financial transaction involved with this action (at least, none are shown in your description).

2.B. Again, no financial transaction 2.C. Write a check (record it in Quicken) for $1500 using the business checking account. Split the transaction within Quicken. On the first line of the split, record $4500 with a category of Repairs, record

-$3000 to the Loan asset account.

QED

Reply to
danbrown

Reply to
Arnie Goetchius

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