Liabilities

5.2 Liabilities: Add Loan Account

Mclowd allows the creation of loan accounts (similar to bank accounts, but with a negative balance). If you had existing loan accounts as at the date of commencement of recording in Mclowd (migration date), you should have created loan accounts in the Fund Setup process. The ADD NEW LOAN ACCOUNT facility allows the creation of new loan accounts set up after the migration date.

To create a new LOAN ACCOUNT, click the LIABILITIES tab.

Mclowd displays a list of your current liabilities, and the LIABILITIES button menu.

Liabilities_JournalEntry_newlist

Click ADD NEW LOAN ACCOUNT.

Mclowd displays:

Liabilities_newloanaccount

Select the Account Owner (fund or a member).


NOTE: Where members invest in segregated assets, a loan account may belong to a Member rather than to the Fund. For example, if Joe Smith decides to use part of his account balance to put a deposit on a rental investment property financed through a loan, and other members of the Fund do not wish to share in this investment, both the property and the loan can be assigned to Joe’s Member Account. All transactions relating to this property would then be allocated to Joe’s account.


Enter or select the Set Up Date for this loan account.

Select the Asset against which this loan is secured.

Enter the Account Name.

Select the Lender from the dropdown list.

Liabilities_newloanaccount_selectlender

Enter the BSB and Account Number for this loan account.

Click ADD ACCOUNT to create this loan account.


about the author:

Lorraine Cobcroft

With a background in accounting and financial management, followed by two decades writing software documentation, Lorraine joined the Mclowd team in mid-2016 and is enjoying working with a dynamic team to enhance an innovative product that has the potential to revolutionize the way Australians manage their retirement funding. Lorraine is also an accomplished business writer, ghost-writer, novelist and short-story writer and poet.

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