Long Term Liability inaccurate

Thank you. I corrected it by going back 2 fiscal years and offset the long term liability. Entered the correction in the memo and then drew the funds out as a cost. As the liability was pre-2018 FY and covered in my tax filings for 2016 & 2017 the correction did not create any other offset in 2018 FY results with exception to correcting the balance sheets. 

It's Equity; the entry for having a loan balance that too low, is Debit Equity and Credit that Loan account. Being more in debt reduces your equity. If the loan balance is too high, that also is offset to Equity: Debit Loan and Credit Equity.

Anything from last year that was income or expense rolled into Equity, already. And if it never was income or expense, just an Initial mistaken entry, and you don't know what else is wrong, then Offset to Equity.

Example:

I put the Fixed Asset and the Loan in, offsetting each other for what I though was $10,000. Now I realize that 2 years ago, someone posted the "down payment" as Expense. That means I Debit (increase) the Fixed Asset by $2,000 and the offset is a Credit to Equity = I get "credit" for having invested more than I am showing right now.