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Entering personal auto loan payments made by the company--C Corp

Recording a loan payment for a personal car loan paid for by the company --C corp. If I record it as a debit to Loan to Shareholder-car loan account wont be credited in QB...
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Re: Entering personal auto loan payments made by the company--C Corp

Hi, Deborah17.

I've got you covered in recording a loan payment in QuickBooks Desktop. Let's get this recorded.

 

In QuickBooks Desktop, you can use journal entries to transfer amounts from one income or expense account to another or transfer amounts from an asset, liability, or equity account to an income or expense account.

 

You can follow the step-by-step process in making journal entry:

 

  1. From the QuickBooks Company menu, choose Make General Journal Entries.
  2. (Optional) In the Make General Journal Entries window, change the Date field.
  3. The Entry No. should automatically populate. If not, type a number for your journal entries. QuickBooks Desktop will automatically number subsequent journal entries.
  4. Enter the General Journal Entry details.
    1. Enter or select the first account in your transaction. If you are using an A/R (accounts receivable) or A/P (accounts payable) account, the first account in the General Journal transaction should be the AR or AP account.
    2. Enter the debit or credit amount for the account you selected in step a.
    3. (Optional) Type a memo describing the transaction. This memo will appear on reports and will include the General Journal entry.
    4. Enter or select the Customer, Vendor, Employee, or Other name associated with the transaction. This is required if you use A/R or A/P accounts.
    5. (Optional) If you selected an Expense account along with a customer or job, you can make the amount billable to the customer by checking the Billable column.
    6. (Optional) Assign a class to the amount.
    7. Repeat steps 4a through 4e to enter distribution lines until the transaction reaches a zero balance. The total in the Debit column should be equal to the total in the Credit column.
  5. Click Save & Close.

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For more details about journal entry, check out this article: Journal Entry in QuickBooks Desktop.

 

For additional help, you can also reach out to our QuickBooks Desktop Support.

 

  1. Within your QuickBooks Desktop, click Help at the top menu bar.
  2. Click Contact us.
  3. To route you to the correct support expert, we need to know what type of question you have. Give a brief description of your issue and click Continue.
  4. We’ll provide you a few options. You choose which one is best for you.

Don't hesitate to drop a reply below if you need more help in recording this loan. I'd love to help.

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Re: Entering personal auto loan payments made by the company--C Corp


@Deborah17 wrote:
Recording a loan payment for a personal car loan paid for by the company --C corp. If I record it as a debit to Loan to Shareholder-car loan account wont be credited in QB...

 

Making the payment lowers cash (credit), using the loan to shareholder account increases (debit) that account, the amount the shareholder owes the company

 

A loan to shareholder is an asset account, they owe the company

A loan from shareholder is a liability account, the company owes the shareholder