How to record deferred interest

Hull Girl · ‎March 04, 2024

I have an EIDL loan that we are not paying on the principal or interest yet.

I have the loan principal set up as a long term liability.

How do I record the interest accrual? I have a short term liability account set up - I assume I credit (increase) that account every month by the deferred interet, but what account do I debit?

Candice C · ‎March 04, 2024

Hey there, @Hull Girl.

It's great to see you back in the Community!

I recommend reviewing this article in the last section (Step 3) about recording interest.

If you're still having trouble after looking over the information, then I suggest consulting with your accountant to be sure what would be best for you business.

I hope this helps. I'm only a comment away if you need me again. Have a wonderful day!

Hull Girl · ‎March 04, 2024

Yeah, that doesn't cover deferred interest, only loan payments. We're not making any payments right now, I just need to know which accounts to debit/credit for the accruing interest.

Rainflurry · ‎March 05, 2024

@Hull Girl

Debit Interest Expense, credit EIDL Accrued Interest.

Topics

Training

Community

Resources

How to record deferred interest