How do I record a Director's loan made to the Director, and the interest payments received from the Director for such loan? Thanks

Hi there, andrewwan22,

Recording a Director's loan can be done in three (3) easy steps. 

First, set up a liability account to record the loan. This helps track what the Director owes.

1. Go to Settings ⚙, then select Chart of Accounts.
2. Click New to create a new account.
3. From the Account Type ▼ drop-down menu, select Non-current liabilities.
4. If planning to pay this at the end of the current financial year, select Current Liabilities instead.
5. From the Detail Type ▼ drop-down, select Notes Payable (or Loan Payable).
6. Give the account a relevant name, like "Directors Loan".
7. Choose when you want to start tracking your finances. In the Unpaid balance field, enter the amount in the account, and determine the as of date. Enter today's date if you want to start tracking immediately.
8. Select Save and close.

Next, record the money you got from the loan as an asset to your business. You can enter what you have to spend all at once, or in partial payments as you get them.

1. Click + New, then choose Journal entry.
2. On the first line, select the liability account you've created above from the Account drop-down. Enter the loan amount in the Credits column.
3. On the second line, select the appropriate asset account from the Account drop-down. Enter the same loan amount in the Debits column.

Upon sharing this, I still suggest consulting your accountant for specific instructions on what account to debit or credit.

Lastly, write a check to record the load payment and interest.

1. Click + New, then choose Cheque.
2. Add a cheque number if you send an actual cheque. If you use direct withdrawal of EFT, enter Debit or EF in the Cheque # field.
3. Enter the following information in the Category Details section.
       * First line: Liability account for the loan and the amount of payment.
       * Second Line: Expense account for the interest and the amount.
       * Additional lines: Any additional fees along with the appropriate accounts.
4. Click Save and close.

To pay and amortise the debt of an intangible asset, see the Amortisation schedule in QuickBooks Online.

Let me know if there's anything else I can help you today. I'm always around whenever you need help.