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I'm developing an app for my personal finance management. My app has a section where it records the amount of money I have borrowed from friends or lent to them. I googled a lot to find a name for that section, so finally I founded the closest word LIABILITIES but I'm not sure if that is the correct name for it?

Your answer will be much appreciated. Thanks in advance.

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  • I would like to suggest a feature for your app. After using the Money Lover app for a few years now, there is one feature that I wish it had. I think it would be nice to have the ability to make future projections on expenses, based on my expenses in the past x months. For instance, I should be able to predict an expense of $780 based expenses in the last 3 months. Or a projected spending of about $1,200 based on expenses in the last month. Consider such a feature if you find it useful as well. Commented Jul 9, 2019 at 9:59
  • @OkiemuteOmuta Thanks bro, sounds great and I'll definitely take it into consideration for my current app.
    – Masood
    Commented Jul 9, 2019 at 11:25

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Private Loans both Owe and Owed.

In my personal finance spreadsheets, I like to separate Loans (money that I've already borrowed) from Liabilities (money that I'm going to owe some time in the foreseeable future, like annual taxes, semiannual insurance payments, etc), even though that isn't the textbook accurate definition of Liabilities.

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In formal bookkeeping, liabilities is an obligation arising from a past business event and which has not yet been settled. Liabilities is the opposite of assets, which are the resources of the company that have been acquired through transactions, and [which] have future economic value that can be measured and expressed in [some currency].

An example of a liability is a personal loan, a mortgage, or an as of yet unpaid bill (which may or may not have been issued yet, but where the business transaction has occurred; an example of this would be a charge to a credit card where the bill has not yet been sent to the credit card holder). Compare also commitments and contingent liabilities.

An example of an asset is the money in one's bank account, a vehicle (which can be sold for cash), or stock in a company.

Consequently, it wouldn't be wrong to use the terms liabilities for money the user has borrowed from others, and assets for money the user has lent to others. However, depending on your target audience, it might be rather on the technical side.

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  • Thanks dude, but since I'm not familiar with accounting terms and terminologies still I couldn't understand clearly what to say. When I search online I find answers same as yours. Complicated answer, sorry to say this.
    – Masood
    Commented Jul 7, 2019 at 14:47
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After looking through a couple of financial planning apps, I finally settled with Money Lover.

When making an entry in the Money Lover app, all of these are placed under the Debt & Loan category. That broad category then has Debt, Debt Collection, Loan and (loan) Repayment.

Now if you want to view monies that you owe or that are owed to you, there is a Debts menu for all these. Under that menu, you have two tabs: Payable (monies you owe) and Receivable (monies owed to you).

I hope this helps too.

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