Loan Repayment with Credit Card in Quickbook Desktop

Hello there, @Alwaysgoods.

Let me show you how to record these transactions in QuickBooks Desktop (QBDT).

We can use a journal entry to record the business expense using personal funds. You can follow these steps:

1. Go to the Company menu and select Make General Journal Entries.
2. Select the appropriate expense account in the first Account column.
3. In the Debit column, type in the amount of the transaction. You can select the customer from the Name drop-down.
4. Choose Owner’s Equity or Owner Investment in the second Account column.
5. Tap Save and Close.

Once done, create a check for reimbursement.  Here's how:

1. From the Banking menu, click Write Checks.
2. Select the business bank account in the Bank Account field.
3. Enter the necessary details. Go to the Expenses tab and enter the Partner's or Owner's equity in the ACCOUNT column.
4. Put the amount you want to reimburse.
5. Tap Save & Close.

You may check this link: How to Record Expenses Paid by the Owner's Personal Funds. It will show you how to record a payment to a business credit card using personal funds.

Let me know if you need further guidance in recording your transactions in QuickBooks. Take care.

Dear @Maybelle_S  thanks a lot for your quick reply. I probably didn't explain the matter really well. 

I paid a personal expense with Business money and I would like to consider that payment as a repayment of a personal Loan made to the LLC. I hope now I was clearer. 

Thanks again

Thanks for coming back to us, @Alwaysgoods.

In QuickBooks Desktop (QBDT), we can select the Other Current Liability for short-term loans and Long Term Liability for long-term loans. This helps you track the portion of a loan payment. 

Here's how:

1. Open your QuickBooks Desktop company file.
2. Go to the Lists menu, then select Chart of Accounts.
3. From the Account drop-down, click New.
4. Select Other Account Types, then Other Current Liability or Long Term Liability.
5. Click Continue.
6. Enter the account name, then Save & Close.

Once done, you can now record and track your loans using the liability account you created. For more guidance, feel free to check out this article: Manually track loans in QuickBooks Desktop.

You might also want to track your loan with the help of the Loan Manager in QuickBooks Desktop. This article will guide you through the process: QuickBooks Loan Manager.

Our doors are always open to help you again if you need further assistance tracking loans. Wishing you all the best.

@Alwaysgoods 

You didn't mention if your LLC is taxed as a sole proprietorship or S-corp - I will assume a single-shareholder S-corp.  Assign your 2022 Distributions equity account to the credit card transaction used to pay the personal expense.  This properly records the credit card charge as a personal expense.  Then, to remove the loan from your books, create a journal entry: debit the Panamerica Loan and credit your 2022 Contributions equity account.  This will decrease and then subsequently increase your equity account by the same amount. 

@Rainflurryyou are right. It's taxed as a sole proprietor. Thanks for your answer, looks reasonable.