Warm greetings, Marufa. I hope you're doing well. I have the information you need regarding loan repayments.
Yes, these are the appropriate categories for loan payments: a liability account for the repayment received and an interest/loan-to-expense account.
To record a loan repayment:
- Hover to + New, then select Check.
- Add a check number if you plan to send an actual check. If you use direct withdrawal or an EFT, enter Debit or EFT in the Check no. field.
Next, enter the following information in the designated section.
- Select the liability account for the loan from the Category dropdown on the first line, then enter the payment amount.
- In the second line, select the expense account for the interest from the Category dropdown, then type in the interest amount.
- On additional lines, add any additional fees. Select the appropriate accounts from the Category dropdown.
- Once done, hit Save and close.
On the other hand, if you need to create a journal entry at the end of the year, I recommend contacting your accountant for further guidance. This will also ensure the accurate of books. If you don't have one, you can find a professional through this link: https://quickbooks.intuit.com/find-an-accountant/.
Furthermore, I'll add an article for you to be guided and understand the different account types and detail types. Check out this article: Learn the purpose of account types.
You can reach out to me by tapping the reply button below. If you need further assistance or clarification regarding loan repayments, I'm always here to help. Best wishes, Marufa!
