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Recording a loan we gave

How and where do I record a loan we gave someone?

I'm specifically asking about a loan we GAVE, not one we received.

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Best answer June 16, 2020

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QuickBooks Team

Recording a loan we gave

Good evening, @sb-alehzayis.

 

Let's get this loan recorded into your QuickBooks Desktop. This type of loan is considered a Loan Receivable since it's a loan given and not taken. I'm here to show you how to get everything set up to have all of the proper recordings.

 

We can start by creating the Loan account. I've provided the steps below on how to do this with ease:

 

  1. Go to Lists in the top menu, then Chart of Accounts.
  2. Click on the Account button and press on New.
  3. Select the Type according to the payment plan. 
    • Other Current Asset: If the loan is scheduled for repayment over this year.
    • Other Asset: If the loan should be paid during the current year.
  4. Hit Continue. Complete the details for the loan. 
  5. (Optional) Add a Description and whether it is a sub-account of another account. You can also select the Tax Line drop-down menu to choose a tax form to associate with the account. Enter an amount into the Opening Balance field and press OK.

 

After creating the account, then you can record the loan payments. Here's how:

 

  1. Go to the Banking tab in the top menu, then Make Deposits.
  2. Select a payment you want to associate with the account if the Payments to Deposit window opens. If the Make Deposits window opens, enter the name of the customer paying off the loan in the Received From column.
  3. Choose the Asset Account you created for the loan in the From Account field.
  4. Enter the customer's payment in the Amount column.
  5. Add the customer's name again in the Received From column.
  6. Pick the account you use to track interest income into the From Account field.
  7. You can enter any part of the payment that goes to the interest in the Amount column. You may use the Interest Income account listed under Other Income type unless you have a specific account to track interest for this loan.
  8. Hit Save and close.

 

That's all there's to it! This is how you can record and keep track of the Loan Receivable in QuickBooks Desktop.

 

If you have any additional questions or concerns, please don't hesitate and reach back out to me. Have a great day.

View solution in original post

1 Comment
Highlighted
QuickBooks Team

Recording a loan we gave

Good evening, @sb-alehzayis.

 

Let's get this loan recorded into your QuickBooks Desktop. This type of loan is considered a Loan Receivable since it's a loan given and not taken. I'm here to show you how to get everything set up to have all of the proper recordings.

 

We can start by creating the Loan account. I've provided the steps below on how to do this with ease:

 

  1. Go to Lists in the top menu, then Chart of Accounts.
  2. Click on the Account button and press on New.
  3. Select the Type according to the payment plan. 
    • Other Current Asset: If the loan is scheduled for repayment over this year.
    • Other Asset: If the loan should be paid during the current year.
  4. Hit Continue. Complete the details for the loan. 
  5. (Optional) Add a Description and whether it is a sub-account of another account. You can also select the Tax Line drop-down menu to choose a tax form to associate with the account. Enter an amount into the Opening Balance field and press OK.

 

After creating the account, then you can record the loan payments. Here's how:

 

  1. Go to the Banking tab in the top menu, then Make Deposits.
  2. Select a payment you want to associate with the account if the Payments to Deposit window opens. If the Make Deposits window opens, enter the name of the customer paying off the loan in the Received From column.
  3. Choose the Asset Account you created for the loan in the From Account field.
  4. Enter the customer's payment in the Amount column.
  5. Add the customer's name again in the Received From column.
  6. Pick the account you use to track interest income into the From Account field.
  7. You can enter any part of the payment that goes to the interest in the Amount column. You may use the Interest Income account listed under Other Income type unless you have a specific account to track interest for this loan.
  8. Hit Save and close.

 

That's all there's to it! This is how you can record and keep track of the Loan Receivable in QuickBooks Desktop.

 

If you have any additional questions or concerns, please don't hesitate and reach back out to me. Have a great day.

View solution in original post

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