HI everyone,
I'm not an accounting Guru,so, wondering if anyone could help me when it comes to setting up a line of credit account in sage 50?
Basically, what I have is:
- A LOC of $XX,XXX.00 where money is automatically taken from it when there's insufficient funds in my bank account.
- A monthly fee of $XX.00 for the LOC
- A monthly interest rate of 7.5% on the amount of money taken from the LOC
- When doing a deposit, money is automatically asigned to the LOC to pay back money taken from it
So far, what I was considering is setting it up like a credit card (i.e.: 2100 account) and recording both interest and payments to it that way. Not sure if this is the right way though as some payables will be split between my regular bank account and the LOC.
Can anyone help me with this?
Thanks in advance to all who reply.
Marc