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Everything you need to know about banking in QuickBooks Online - Discover more
mike-biochemit
Level 1

How do I enter a bank loan, what category does it come under?

 
1 REPLY 1
Becky29
QuickBooks Team

How do I enter a bank loan, what category does it come under?

Hi mike-biochemit

 

If you would like to account for a bank loan you would:

select accounting > chart of accounts > new > account type will be current liabilities, if the amount is to be paid back within 12 months, if not  Non current liabilities> in the detail type select current liabilities, if the amount is to be paid back within 12 months, if not long term borrowings > enter a name e.g. Bank loan > save and close.

When you receive the amount into your account you will:

create a bank deposit; select New+ > bank deposit > in the account field in the top left ensure you have selected the bank that the amount was received to and the corresponding date in the date field > in the received from column, within the 'add funds to this deposit' section, enter the name of the bank, however this is not mandatory > in the account column select the liability account and in the amount column enter the amount that was received > in the amounts are field select No VAT.

When you pay the amount back, or a proportion to the bank/it is deducted from your account you will:

create an expense; select the New+ icon > expense > Enter/create the bank in the payee field > in the payment account select the bank account the amount is being paid from > in the date field select the date the amount was debited from your account > in the category column enter the liability account you created earlier > enter the amount of the loan in the amount column > in the amounts are field select No VAT > save and close
 

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