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Hi. I have recently purchased machinery that I am splitting 50/50 with another farmer. The loan payment is say $2000, of which we would each owe $1000. The full amount is being withdrawn from my account and I am receiving $1000 payments from the other owner. How would I go about recording this in ag expert?
Hi Pat - that's a few transactions you're going to need to do and I think it would probably be best to call in so that we can make sure it's all in correctly but I've set out the steps for you below. It sounds like the loan is in your name rather than part of it under the other farmer and I've taken that into account.
1. Purchase the capital asset as if you were not splitting it 50/50. (Withdrawal, C+ for the full amount, L+ for the full amount).
2. Split the capital asset (Setup > Capital Assets) so that you have two assets each worth half of the total.
3. Enter a Receivable Charge to sell one of the 50%'s to the other owner.
4. Enter loan payments as you normally would (entire payment withdrawn and applied as L- against the loan)
5. Enter deposits from the other owner as receivable payments.