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Join nowThe loan was paid by the SBA directly to 2 business credit cards, they also gave me a check to deposit to the business bank account. How do i record it?
For ease of understanding i will be using fake numbers.
The total loan was $50K,
payment to card 1 was $25k.
payment to card 2 was $20k,
the balance of 5k was given in the form of check and that was deposited to the business bank account.
It is a sba loan, 5% interest for 5 years.
all numbers are fictitious.
Solved! Go to Solution.
Thank you for sharing your concern in the Community, @Vane.
Allow me to help you record loans in QuickBooks Desktop (QBDT).
To properly record the SBA loan and the payments made to the vendors, you would typically follow these steps in your accounting software:
Moreover, you can proceed to set up Vendor for the Bank that you need to pay for the loan
After that, create an expense account so you can track interest payments or fees and charges.
To help you further with your liability account, I recommend seeking advice from your accountant. You can visit this website if you don't have one yet: Find a QuickBooks ProAdvisor.
Once you have the liability account, you'll be ready to record the loan: Manual track loans in QuickBooks Desktop.
Moreover, here's an article to help you keep track of every transaction you've entered inside the program: Understand reports.
Please don't hesitate to update us here in the Community for additional questions when setting up a loan with QuickBookse. We're always here to lend a hand.
Make two journal entries as shown below. You can make one journal entry if you want to record both transactions as of the same date. Otherwise, make two separate journal entries, each with the proper date.
Debit | Credit | |
Credit Card 1 (liability) | 25,000 | |
SBA Loan Payable (liability) | 25,000 | |
Credit Card 2 (liability) | 20,000 | |
SBA Loan Payable (liability) | 20,000 |
Then, make a deposit for $5,000 and assign the SBA Loan Payable liability account to it.
Thank you for sharing your concern in the Community, @Vane.
Allow me to help you record loans in QuickBooks Desktop (QBDT).
To properly record the SBA loan and the payments made to the vendors, you would typically follow these steps in your accounting software:
Moreover, you can proceed to set up Vendor for the Bank that you need to pay for the loan
After that, create an expense account so you can track interest payments or fees and charges.
To help you further with your liability account, I recommend seeking advice from your accountant. You can visit this website if you don't have one yet: Find a QuickBooks ProAdvisor.
Once you have the liability account, you'll be ready to record the loan: Manual track loans in QuickBooks Desktop.
Moreover, here's an article to help you keep track of every transaction you've entered inside the program: Understand reports.
Please don't hesitate to update us here in the Community for additional questions when setting up a loan with QuickBookse. We're always here to lend a hand.
Make two journal entries as shown below. You can make one journal entry if you want to record both transactions as of the same date. Otherwise, make two separate journal entries, each with the proper date.
Debit | Credit | |
Credit Card 1 (liability) | 25,000 | |
SBA Loan Payable (liability) | 25,000 | |
Credit Card 2 (liability) | 20,000 | |
SBA Loan Payable (liability) | 20,000 |
Then, make a deposit for $5,000 and assign the SBA Loan Payable liability account to it.
Thank you for taking the time to respond.
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