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 ChartofAccounts.
Click the New button and select a liability account in the AccountType field: • OtherCurrentLiabilities - if the loan will be paid within the current fiscal year. • LongTermLiabilities - if the loan will be paid after the current fiscal year.
Select LoanPayable in the DetailType 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 SaveandClose.
Now, you can start creating a bank deposit for a loan. Here's how:
Click the Create menu at the top (+) and select BankDeposit.
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.