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Pdiddy
Level 1

Directors loan paid off in full

Hi I have recently paid back a directors loan in full so need to show that it has been repaid but can’t seem to find how to do that I assume I have to set up an entry to show the loan in the first place and then show that it has been paid back can anyone advise ? 

many thanks 

 

Solved
Best answer April 01, 2022

Accepted Solutions
paul72
Level 8

Directors loan paid off in full

Hi @Pdiddy 

 

I'm not 100% sure if this is a loan to a director from the company or a loan from a director to the company.

 

Either way, the process is similar.

Set up the loan account (either as an asset or a liability depending on which way the loan is going).

 

Entry to show the loan - either a cheque or a deposit posting from the bank account to the loan account.

 

Entry to repay the loan is the reverse - either a deposit or a cheque to the bank account from the loan account.

 

Hope this helps.

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2 REPLIES 2
GeorgiaC
QuickBooks Team

Directors loan paid off in full

Hi Pdiddy, thanks for joining us here on the Community - do you know which Chart of Account the loan was recorded as deposited into? 

paul72
Level 8

Directors loan paid off in full

Hi @Pdiddy 

 

I'm not 100% sure if this is a loan to a director from the company or a loan from a director to the company.

 

Either way, the process is similar.

Set up the loan account (either as an asset or a liability depending on which way the loan is going).

 

Entry to show the loan - either a cheque or a deposit posting from the bank account to the loan account.

 

Entry to repay the loan is the reverse - either a deposit or a cheque to the bank account from the loan account.

 

Hope this helps.

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