Farm Cheque Account
The Farm Cheque Account will have a debit entry from the grossed-up purchase/sale entry and a credit entry for $20,000 from the cash transfer.
Chattel Plant Bank Account
The new Chattel Plant Bank Account will have a debit from the cash transfer and another debit transaction for the other items such as interest & fees.
These two added together will equal the total amount borrowed and the closing balance to enter is a debit. Tick off both transactions to bring the balance back to $0.00.
Each repayment will be entered as a cash transfer from the Farm Cheque Account to the new Chattel Plant Bank Account.
The effect of the cash transfer will reduce the balance of the Chattel Mortgage with each repayment.
For instructions on reconciling bank accounts click here.
Please note the following when using either option:
- Each new Chattel Mortgage agreement should have its own separate bank account for Option 2.
- Full details should be entered on each transaction detailing the type of purchase, sale or trade-in details.
- If using Option 1, a new Chattel Payment code should be set up with the name of the plant included (e.g. Chattel Payment - header).