There are a few things we'll want to prepare before we can record a loan, Ccvapors18.
First, we'll create a liability account to track the loan payable. Let me show you how:
- Click the Gear icon in the upper-right corner and select Chart of Accounts.
- Click the New button and select a liability account in the Account Type field:
• Other Current Liabilities - if the loan will be paid within the current fiscal year.
• Long Term Liabilities - if the loan will be paid after the current fiscal year. - Select Loan Payable in the Detail Type field. You can also reach out to your accountant to see what detail type suits your business needs.
- Enter the account name in the Name field and click Save and Close.
Now, you can start creating a bank deposit for a loan. Here's how:
- Click the Create menu at the top (+) and select Bank Deposit.
- Select a bank account in the Account field.
- Go to the Add funds to this deposit section.
- Enter the liability account in the ACCOUNT column.
- Enter the loan amount in the AMOUNT column and click Save and close.
Then, you can create a check to record a loan payment. Feel free to follow Step 3 in this article: Record a Loan and Its Payment.
I'll be around if you need more help with this.