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dawkins
Level 1

How do I record a loan for which I immediately paid back? Don't want the loan to show up as revenues.

 
3 Comments 3
KimMcCPA
Level 6

How do I record a loan for which I immediately paid back? Don't want the loan to show up as revenues.

@dawkins ,

 

You're correct, loans are not revenue, because you would not be expected to pay back revenue.

 

Loan payable, an Other Current Liability, is what to use with short term loans (being paid in less than a year).

 

When proceeds of a loan are received, debit Checking or Savings, as appropriate, and credit Loan payable.

When a loan is paid, debit Loan payable and credit Checking. 

dawkins
Level 1

How do I record a loan for which I immediately paid back? Don't want the loan to show up as revenues.

Hi Kim,

Thanks much. Got that.  Still having confusion as to how I record it.  Here are the details:

 

I have a line of credit (LOC) and took out $10K so in my bank acccout it shows the decrment from my LOC of $10K. The $10K added to my checking account, then the bank reverse the transaction in an hour.

 

Now in QB am showing the $10K and the -$10K as expense.  Any suggestions as to which accounts or sub acouunt I use to record the transaction correctly?

 

Rgds

KimMcCPA
Level 6

How do I record a loan for which I immediately paid back? Don't want the loan to show up as revenues.

LOC Payable, and that would also be an Other Current Liability.

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