Loan entry and repayments

Question asked by Kerry Whittleton 9 years ago

How do I enter receipt of lump sum that has been paid into the business bank account during period of expansion and how do I enter the payments that will be made to pay back over a period of time

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Hi Mark

  1. Create a new bank account [loan]
  2. Do a transfer out of the loan account into your bank account for the lump sum
  3. Class the monthly repayments as transfers from your bank account to the loan account
  4. Do an adjustment via a journal or a money out transaction to reflect the interest being charged [monthly/quarterly/annually to suit your needs]
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9 years ago

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