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I have given short term loan one of my friend. How to record it in QuickBooks online?

I have given short term loan one of my friend. How to record it in QuickBooks online?

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Best answer 09-09-2019

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Established Community Backer ***

If you loaned money personally, then nothing is entered i...

If you loaned money personally, then nothing is entered in the business accounting

if the business loaned money, create a current asset account called due from [name]

use that due from asset account as the expense for the check you wrote to the friend

9 Comments
Established Community Backer ***

If you loaned money personally, then nothing is entered i...

If you loaned money personally, then nothing is entered in the business accounting

if the business loaned money, create a current asset account called due from [name]

use that due from asset account as the expense for the check you wrote to the friend

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I set up the current asset account as you instructed and...

I set up the current asset account as you instructed and entered the amount my brother borrowed.  Now, how do I show when he makes a payment on the loan?
Established Community Backer ***

make a deposit and use that same account as the source (f...

make a deposit and use that same account as the source (from) account for the deposit
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Awesome!  Thanks

Awesome!  Thanks
Established Community Backer ***

You're Welcome

You're Welcome
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How would you recorded Interest amounts and principal amo...

How would you recorded Interest amounts and principal amounts?
Established Community Backer ***

Loans to Family are not Business at all. You removed fund...

Loans to Family are not Business at all. You removed funds from your business to use Personally. None of this is business.
Experienced Member

Re: Loans to Family are not Business at all. You removed fund...

How do you know his brother doesn't own a business?

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Re: You're Welcome

After you have the loan receivable as an asset how do you account for interest that will be paid also? Would the offsetting entry be to accounts receivable?  

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