Welcome to the Community space, Nellie. Let's team up to record a loan paid using another loan inside QuickBooks Desktop (QBO).
Reading through your post, know you'll want to set up a new liability and bank account for your latest loan. This way, you can use the recently acquired loan to pay off any remaining balances from your previous loan. For more details, please see this page: Manually track loans in QuickBooks Desktop. Once everything is ready, here's how you can pay off your previous loan:
- Go to the Banking menu, then select Write Checks.
- Select the Bank Account you want to use to pay the loan.
- Verify the Check NO. and Date.
- In the Pay to the Order of field, select the name of the bank.
- In the Expenses tab:
- On the first line, select the liability account you created in Step 1. Then enter the payment for the principal amount.
- On the second line, select the interest expense account. Then enter the payment for the loan interest.
6. When you’re done, select Save & Close.
If you're unsure of the process, we recommend reaching out to your accountant so they can provide other ways to handle this situation. In case you don't have an accountant, I can help you find one. Feel free to visit this page to find an accountant for your business: Find a QuickBooks ProAdvisor.
Moreover, here's an article to help you keep track of every transaction you've entered inside the program: Understand reports.
We look forward to having you here again if you need further assistance managing loans inside QuickBooks, Nellie. Feel free to visit us anytime so we can respond and address your concerns right away. Have a good one.
