How do loan accounts work

Question asked by Keith Charnley 10 years ago

How do I treat a loan to the Company? Interested to know on bank loans but also private loans and loans from another company. Cannot see any relevant help files

1 Reply

Hi,

You need to create a new account code for the loan account at settings > codes > add - type is "other liabilities." Director's loan accounts, and any to the loan account which you will use like a bank account to pay off bills from and received invoices into should be entered using money > banking > new bank account.

Enter money received From: Creditor's name Account Code: Loan Account.

Reply to this question

Attach images by dragging and dropping or upload
 

Your comments will be public and can be answered by anyone in the Clear Books community.

Find out what we do and who we are