cancel
Showing results for 
Search instead for 
Did you mean: 
Protocol2000
Level 3

Officer loan for debt settment

Hi everyone. As an officer I loaned mine and my partner  SCorp 55k to settle an old debt. I created a Note Payable with a 1% interest payable in 5 years. I am paying myself 533.10 monthly. The original debt was for 133K, settled for 55K, Can someone help me with this entry?

Thank you. 

1 Comment 1
Rustler
Level 15

Officer loan for debt settment

Create a liability account for the loan you made
the original debt should already be in a liability account


do a journal entry

debit the original debt account for 55K
credit the personal loan account for 55K

debit the original loan account for the balance, 78K
credit Other Income for the 78K
save

Need to get in touch?

Contact us