No, it is neither an expense to you or income to the recepient.
Loans are investments, even in a personal sense, a balance sheet, not income statement item. The (presumably cash/money) asset is offset by having an asset of another type....normally a receivable or investment ...it just isn't cash. (The borrower receives cash asset and has a corresponding liability of the payable).
The income, presumably interest, on the loan is income. If the loan/investment isn't paid, and meets the qualifications for being a bad debt, the amount not repaid is an expense.
Yes payment of loan liability is your expense decreasing the liability as well as asset from which you are paying the loan liability.
Neither. The actual loan is a capital item and the interest on the loan is an expense for the borrower but income for the lender. The only time the loan itself becomes an expense item is when the unrecoverable portion needs to written off and then it becomes a bad debt. Repayment of the loan is entirely on the asset accounts for both the borrower and lender.
Is tithing an acceptable monthly expense when being considered for mortgage loan modification?
As an expense, loan interest should be placed in the debit side of the Profit & Loss A/c and not in the Trading a/c.
No, you cannot pay back a loan with the same loan money.
Yes payment of loan liability is your expense decreasing the liability as well as asset from which you are paying the loan liability.
Non-Operating Expense
Neither. The actual loan is a capital item and the interest on the loan is an expense for the borrower but income for the lender. The only time the loan itself becomes an expense item is when the unrecoverable portion needs to written off and then it becomes a bad debt. Repayment of the loan is entirely on the asset accounts for both the borrower and lender.
most difinately not. it study loan.
Is tithing an acceptable monthly expense when being considered for mortgage loan modification?
As an expense, loan interest should be placed in the debit side of the Profit & Loss A/c and not in the Trading a/c.
Monetary expense is basically a cash-money expense, so a non-monetary expense is an expense that isn't money. Some examples would be physical or personal expense.
No.
When the money for the loan is received it is recorded as cash. Payments are not recorded until the actual payments are sent out. This will be recorded as a debit to a loan expense account and credited directly to cash. The interest is debited directly to an interest expense account and credited directly to cash for the same payment. A compound entry can be used for this purpose. There is no loan payable or interest payable accounts for cash basis accounting.
If revenue (income of money) is a credit, then an expense (outflow of money) is a debit.
debit loan accountcredit owners equityDebit Loan Payable Debit Interest Expense Credit Paid in Capital
No, you cannot pay back a loan with the same loan money.