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Hi Folks!
We have a loan that we were tracking payment in QBO. However, we've paid the loan off using funds from an account not in QBO. How do I enter the pay-off in QBO to clean up the balance sheet? I assume it's going to be a journal entry, but I've never entered one before...
Thanks in advance for any assistance!
Terri
Solved! Go to Solution.
Hey there, Teesa66.
Yes, you can. I'll explain how the journal entry work in QuickBooks. The journal entry is a record of a transaction in which the total amount in the Debit column equals the total amount in the Credit column, and each amount is assigned to an account on the chart of accounts.
When a transaction is entered directly into a non-bank balance sheet account register, QuickBooks automatically labels the transaction GENJRNL in the register and General Journal on reports that list transactions.
You can make journal entries in QuickBooks by following these step-by-step instructions:
I'd suggest consulting an accountant to help and guide on which account to debit and credit. Your accountant can provide more expert ways of dealing with this situation and help you create the right account. If you don’t have an accountant, you can find one here: Find an Accountant.
I'd like to know how you get on after trying the steps and consulting your accountant, as I want to ensure this is resolved. Just get back to this post, and I'll get back to you. Take care always.
Hey there, Teesa66.
Yes, you can. I'll explain how the journal entry work in QuickBooks. The journal entry is a record of a transaction in which the total amount in the Debit column equals the total amount in the Credit column, and each amount is assigned to an account on the chart of accounts.
When a transaction is entered directly into a non-bank balance sheet account register, QuickBooks automatically labels the transaction GENJRNL in the register and General Journal on reports that list transactions.
You can make journal entries in QuickBooks by following these step-by-step instructions:
I'd suggest consulting an accountant to help and guide on which account to debit and credit. Your accountant can provide more expert ways of dealing with this situation and help you create the right account. If you don’t have an accountant, you can find one here: Find an Accountant.
I'd like to know how you get on after trying the steps and consulting your accountant, as I want to ensure this is resolved. Just get back to this post, and I'll get back to you. Take care always.
@AileneA Thanks for the assist! I entered the journal entry and cleared the balance of the LOC.
Hi there, @Teesa66.
Thanks for letting us know that entering a Journal Entry resolved your issue. I'm happy that you're back on track.
Please know that you can reach out to the Community any time. We're always around to lend a hand. Take care!
I am having this same issue however, I don't know which accounts to debit and credit as the funds that paid off the loan came from and outside source and not an account in my QBs. I need to show the loan was paid off and that it was from an outside source so my balance sheet will balance. Please, help.
I am having this same issue. I have a Long term Loan that was paid with funds not in my OBs and I need to know what accounts to debit and credit to get my balance sheet to balance.
Let me help you record your long-term loan in QuickBooks Online (QBO), Danashell.
You may need to create a bank account to represent the external source and then deposit the amount paid. With this, you can proceed and record the loan payments normally.
Here's how:
Then enter the following in the Category details section of the check:
If you prefer using a Journal entry, you can Credit the bank, and Debit the liability account (loan account). However, I suggest consulting your accountant for advice on how to properly handle this matter, so your report will reflect accurate data.
Feel free to come back to this thread if you have more loan-related concerns in QBO. The Community is here to assist you 24/7.
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