Line of Credit reconciliation adds interest as a debit ( instead of credit ) and requires a journal entry

kcroy · ‎December 22, 2023

I have my LOC set up as "Other Liabilities". When I go to reconcile, and add the interest, my expectation is that it would increase my liability. Instead it treats it as a reduction of liability. It also creates a Journal Entry, which is confusing to me. If I understand this correctly, it is trying to pull funds from another account.

I just want to add interest to this account. Can someone please suggest the correct way to do this, or help me understand why this current way is correct?

Thanks in advance

Rainflurry · ‎December 23, 2023

@kcroy

"I just want to add interest to this account."

The attached journal entry is doing that. It is increasing your interest expense (debit) and increasing your LOC liability balance (credit) by the same amount. All you need to do now is to assign the payment to your LOC liability account and you should be all set.

kcroy · ‎December 27, 2023

Thank you!

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Line of Credit reconciliation adds interest as a debit ( instead of credit ) and requires a journal entry

Line of Credit reconciliation adds interest as a debit ( instead of credit ) and requires a journal entry

Line of Credit reconciliation adds interest as a debit ( instead of credit ) and requires a journal entry

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