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Level 1

What entries do I make to pay off one loan with a new loan?

 
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Community Champion

What entries do I make to pay off one loan with a new loan?

Journal Entry net=0

Debit old loan

Credit new loan

 

Unless cash is involved, then you can use either "check" if you had to add money or "deposit" if you received extra. In both of those transaction types you can directly enter the old and new loan accounts in and out

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Level 1

What entries do I make to pay off one loan with a new loan?

If i have an existing line of credit for $50,000 and I am getting a new line of credit for $75,000, how would i enter the new loan so it would pay off the one loan but leave the available monies in the new line? 

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