I am trying to record a loan where I borrowed money to pay a lawsuit settlement. ($200,000)
I borrowed from 2 entities, a bank ($150,000) and a family member ($50,000). Both of these loans were checks which I deposited into my business checking to pay the lawsuit debt.
How do I record the check for $200,000, written to the person the lawsuit monies went to...what account should be in the expenses tab?
Hi there, @GM90.
Welcome to the Community. I'd be happy to help walk you through how to set up the loan in your QuickBooks Desktop.
To start, you need to create a liability account to track the loans payable. Let me guide you how:
After setting up the account, you can now record the loan amount.
Once done, write a check to the person where the monies went to. While we can't recommend a specific expense account to use, you may consult your accountant for advice about this to make sure your books are recorded correctly.
Finally, please refer to the steps below to record the loan payments.
I've attached an article below about this for additional reference: Track Loans in QuickBooks Desktop.
These resources should help to get you on the right track for recording the loan amount and payments in QuickBooks.
Drop me a comment below if you have any other questions about tracking loans or about QuickBooks. I'll be happy to help you further. Wishing you and your business continued success.