What would be the appropriate account for written off loans to friends and family?

Question

In the past I have lent some money to friends and family, which I have not gotten back. I don't want to ask them for the cash, but I do want to clean up my accounts. How would I record this in my books? Currently I have loans to friends and family in separate asset accounts, which I call "`asset.<person's full name>`". FYI: 1. I think I get the basic principle of accrual accounting, but I am not familiar with standard terminology for standard accounts. 2. I am self-learning accounting to help me manage my personal finances, and manage my small businesses.

Answer 1

So you would need to set them up as Accounts receivable .