How to Record Bank Interest Earned

This article will show you how to record the interest you have earned on a trust bank account

If you receive interest on one or more of trust accounts, the best way to enter that into your Rentvine account is through a Journal Entry. Follow the steps below to show that you have received interest.

 

  1. First, you will want to have a GL in your chart of accounts created for "Bank Interest Earned" or something similar, and that will need to be an income account. Please create that account now if you do not currently have one. 
  2. Once that GL account is created, you will want to create a new journal entry
  3. On the left side of your screen, click on Accounting
  4. Then, click on Transactions
  5. Click on the green Actions button on the far right
  6. Click on New Journal Entry from the drop down menu
    Screen Shot 2021-08-05 at 3.39.34 PM
  7. In the New Journal Entry screen, complete the fields to record for the interest earned
    1. In the Ledger field, type in the same of your management company, and select that ledger. This will ensure the interest gets applied to you as income
    2. The Date Posted will default to today, but you can edit that to the day you received the interest
    3. Enter in a Description that explains the journal entry (i.e. August Bank Interest Earned)
      Screen Shot 2021-08-05 at 3.48.56 PM
    4. In the first Account field, select the GL account for Bank Interest Earned, or the GL account you created. Enter in $0 for the Debit field, and the amount of the interest you earned in the Credit field
    5. In the second Account field, select the bank account on which the interest was earned. Enter in the amount of interest you earned into the Debit field, and $0 in the Credit field
    6. You should now see that the debits equal the credits. If so, you are finished adding your entries
      Screen Shot 2021-08-05 at 3.47.24 PM
    7. Click the green Save button

 

To check your work and ensure you entered the journal entry correctly, you can check your Manager Ledger and/or your Bank Ledger for that entry. You should notice an increase on both ledgers. If not, you can void that journal entry and enter it in again.