|
Aug 2022
2:59pm, 19 Aug 2022
65,085 posts
|
GlennR
Payments are one thing, balances another.
|
|
Aug 2022
4:28pm, 19 Aug 2022
36,567 posts
|
LazyDaisy
I'd create a 'widget' account so you have the debt of £10000 as a creditor on your Balance Sheet and write it down as you pay off the instalments. (ie, outgoing from Bank account, incoming to the Widget account.)
(I'd have a balance sheet so that I didn't run away with the idea that I was richer, or at least owed less, than I really was/did.)
Disclaimer: it's 46 years since I did basic book-keeping, so I may be wrong!
|
|
Aug 2022
4:18pm, 22 Aug 2022
11,428 posts
|
lammo
Love this and so sorry i missed it live.
How are you getting on Greppers?
|
|
Aug 2022
6:23pm, 22 Aug 2022
138,522 posts
|
GregP
Good, actually. A lot of what's making me scratch my head should be household management 101. Like what to do monthly about annual costs.
Pretend we have widget insurance which is £600 payable in August.
So I can ignore it on my monthly budget and go 'bugger me!' in August and flap. Or I can pretend it really does cost £50 a month. Or budget £50 a month which makes it wrong *all the time* - like a watch one second fast.
|
|
Aug 2022
8:15pm, 22 Aug 2022
7,337 posts
|
Fizz :-)
What you need is accruals and prepayments.
|
|
Aug 2022
5:50am, 23 Aug 2022
138,528 posts
|
GregP
In English please?
|
|
Aug 2022
7:41am, 23 Aug 2022
7,338 posts
|
Fizz :-)
Sorry, I was being deliberately unhelpful and showing off.
I’m sure someone will explain better but:
Imagine the insurance company would give you a full proportionate refund at any point.
Day 1: £600 leaves your bank. It doesn’t go against insurance, but into a refunds (prepayment) account.
Each month, £50 goes against insurance and the balance in the refund (prepayment) account reduces.
If you paid your insurance annually in arrears, you would build up a savings (accrual) account ready to pay the bill when it arrived.
|
|
Aug 2022
7:43am, 23 Aug 2022
7,339 posts
|
Fizz :-)
(I would ignore anything for the current year and start when you make your next payment)
|
|
Aug 2022
8:35am, 23 Aug 2022
138,529 posts
|
GregP
Ah - like the loans and (I think this is the term Glenn taught me) memorandum accounts? That makes utter sense. Thank you so much.
|
|
Aug 2022
8:50am, 24 Aug 2022
25,177 posts
|
Angus Clydesdale
This thread has reminded me why I left banking and became a soldier. Thank you! 
|
