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
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?
