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gc141
April 8, 2023
Question

How to handle T-bills - Especially when received back with interest payment

  • April 8, 2023
  • 2 replies
  • 0 views

When receiving the full redeemed price for a T-Bill back directly into my checking account how do I record this into my interest income account and then put the original purchase price (now in an (other current asset account) and the interest income back into the main checking account?

Thanks

2 replies

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Ethel_A12
April 8, 2023

You can make a bank deposit to record the income and original purchase price, @gc141.

 

I'm happy to show you how to record your interest income.

 

Here's how:

 

  1. From the Homepage, select Make Deposits.
  2. In the Payments to Deposit window, choose the payment you want to include with the deposit.
  3. Click OK, and it will go to the Make Deposits window.
  4. Tap the Deposit To list and choose the bank account you want to deposit into.
  5. Add two line items. 
    For line 1, enter the amount of the interest income amount.
    For line 2, enter the original purchase amount under the current asset account.
    Note: Make sure the total amount is equivalent to the amount you received as the redeemed price.
  6. Hit Save & Close.

 

For more details, read this article for reference when creating deposits: Record and make bank deposits in QuickBooks Desktop.

 

You can read this article to guide you in reconciling your account: Reconcile an account in QuickBooks Desktop.

 

Let me know if you have questions about making deposits in QuickBooks Desktop. I'm always here to help. Have a great day.

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gc141Author
April 10, 2023

Thank you for responding.  I'm still not clear on the whole process. This is what I have setup in my Quickbooks pro 2016.

Treasurydirect withdraws funds from my checking acct for purchase of a T-Bill ($24,910.75)

I then created an (other Current Asset) account called T-Bills.

I created a Vendor called Treasury Direct.

I wrote a check from my Checking account to the vendor Treasury Direct and charged to account T-Bills. The amount was for $24,910.75.  This transferred the amount out of checking and into the T-Bills Asset account.

Now the Treasury Bill has been redeemed and Treasurydirect deposits the full $25,000 into my checking account which includes the interest payment I receive which is $89.25.

I have a Interest Income Income account so I created a Interest from T-Bills sub account.

 

So now I don't know how to link this $89.25 interest income to the $24,910.75 Tbill and transfer it all back into the checking account and make sure it will not screw up my bank account when reconciling it.

As you can probably determine I'm not any sort of a book keeper.

Thanks for any additional help you can offer.

Gilbert

 

 

 

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ReymondO
April 10, 2023

Hey there, @gc141.

 

Thanks for getting back to this thread. 

 

We can link the $89.25 interest income to the $24,910.75 by recording them both as a single deposit in QuickBooks Desktop. You can still follow the suggestions above to record the transaction. You can also check the screenshot below as your reference when recording the payment and the interest. 

 

 

If your account is connected to online banking, you can match this transaction to your downloaded. That way, they will automatically be cleared on your bank register. 

 

If not, you can manually reconcile the transaction inside QuickBooks. 

 

I'd also suggest getting in touch with your accountant before recording your vendor payment and interest. They can provide you with the right advice in making sure your books are accurate. 

 

In case you need help with other tasks in QBDT, feel free to browse this link to go to our general topics with articles. 

 

If you have any other follow-up questions about this or any QuickBooks questions, please let me know by adding a comment below. I'm always here to help. Have a good one!

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MaineDWD
April 15, 2023

Today I tested whether it works well to set up "Other Asset" accounts for T-Bills, and once matured, TRANSFER that asset at it's original purchase price to a checking account, and THEN make a deposit for the interest amount earned on it. And it works GREAT.

 

Here is how I set up our T-Bill accounts (Subaccount T-Bills under "Other Assets", then sub-sub-account for each T-Bill, showing the code and the number of times we set it to automatically renew (just to keep track of them individually)). Each was assigned to these account on purchasing them from Treasury Direct:

 

 

When a bill matures and is returned to our checking account, we'll transfer the specific bill to our checking account, and create a deposit for the interest earnings.

 

This will leave the "Other Asset" T-Bill account empty for re-use (name can be edited for a different bill).

 

Hope this helps. May not be how everyone will do it, but it makes sense to me to track each individual bill, and simply transfer the amount back to checking once it matures and is returned by Treasury Direct.

 

Val

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Vicky44
December 29, 2023

I just found your post and wanted to Thank You!  I use QB Online, but couldn't get it to automatically connect to my E*Trade account.   I've been looking for a way to manually record my T-Bill purchases.  Your way will work perfectly!  Happy New Year!

Vicky

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