Go to ‘Make Payment’ –> Select Pay to- ‘Interest/Penalty on Credit Card’ (grouped under indirect expenses), and in pay from: ‘The Bank A/c’ through which you will make the payment, and record accordingly. If there is interest payable on credit card or some penalties on late payment, the same needs to be recorded separately. This entry shows a debit to Bad Debt expense and a credit to the associated receivable account. Treasury could choose to treat it as a retroactive. Data entry for PPP loans for C and S-Corporations. Some of the modes of Islamic banking/finance include Mudarabah (profit-sharing and loss. Forgiven PPP loan proceeds are excluded from taxable income and are treated as tax-exempt income. of Personnel Management (OPM) on their use of the student loan repayment authority. Its an accounting entry for the government and a real gain to the students that have the debt forgiven. Islamic banking, Islamic finance ( Arabic: ), or Sharia-compliant finance 1 is banking or financing activity that complies with Sharia (Islamic law) and its practical application through the development of Islamic economics. If the debt must be written off, an adjusting entry is required in the general journal. The Federal student loan repayment program permits agencies to repay. Select ‘credit card’ under ‘Pay to’ Field, and ‘Bank’ under ‘Pay from’. Record the journal entry for the forgiveness of the debt. Then when we pay the credit card bill (which is like repayment of loan), through ‘Make Payment’ under expenses. Then while booking expenses borne through credit card, record expenses like usual, just selecting the ‘credit card’ account while making payment, instead of bank A/c. Below are the simple steps for recording business credit card transactions.Ĭreate an A/c named ‘Credit Card’ under A/c Group ‘Unsecured Loans’. It’s no different than a small loan account.Īs a best practice, one should keep personal and business credit card separate. This interest is debited to your expense. In your bookkeeping, interest accumulates on the same periodic basis even if the interest is not due. The period can be monthly or semi-annually with interest paid out based on a payment schedule. Some facts: Libraries employ around 367,000 librarians and other professionals, paraprofessionals, clerical and technical personnel nationwide and technical. ![]() ![]() government in 1938 to help boost the mortgage market while Congress chartered Freddie Mac in 1970 as a private company. You see, until now, I was under the delusion that personal responsibility, honoring commitments, and sacrifice were admirable traits. Banks and lenders charge interest on their loan repayment on a periodical basis. Fannie Mae was first chartered by the U.S. FILE - (AP Photo/Steve Helber, File) Am I a fool I have never thought to ask myself that question. The transaction basically is, we use credit given by bank for making the payment, during the entire month, and then we repay the bank the amount due once a month by the due date. MULLIGAN: Unicorns and fairies and student loan forgiveness. Manyatimes, we use credit cards to make payments, but ever wondered how to account for credit card transactions?
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