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JordenLane
Level 1

How do you reconcile a loan payment towards a fixed asset? ie. loan mortgage payment towards land purchase

I have linked my business checking account, which shows the transactions for the loan payment towards our commercial property. Since the loan is for a fixed asset (land) - how do I set up my account so that I can show both the asset and liability on my balance sheet? Everything looks negative now :) and we have a lot of equity in the property. 

 

Thanks for any insight....

 

 

1 Comment
CharleneMae_F
QuickBooks Team

How do you reconcile a loan payment towards a fixed asset? ie. loan mortgage payment towards land purchase

Hello there, @JordenLane.

 

I'll guide you on how to reconcile your loan payment towards your fixed asset.

 

First, you'll have to set up an account for your fixed asset and your liability.

 

Then, when recording the payment, the only account that will be affected is the liability account.

 

After that, the reconciliation should be done in the liability account.

 

  1. Go to the Gear icon, then select Reconcile.
  2. From the Account ▼ dropdown menu, select the liability account.
  3. Enter the Ending balance and Ending date as they're written on your bank statement. 
  4. When you're ready, click Start reconciling.

 

Also, I recommend reaching out to an account to keep your QuickBooks account accurate.

 

You can check the chart of accounts so you can better understand what each account is for and what it does.

 

As always, feel free to visit our Help Articles page in case you have other QuickBooks Online concerns.

 

Please let me know in the comment section down below if you have additional questions. I'll be always around ready to help.

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