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Mandlseptic
Level 1

How to enter loan payoff paid with business and personal funds

We paid off the $73,025.81 remaining loan amount with our business account, however, $30,000 of that came from our personal funds investment. 

I did the entry like this:

Business checking $73025.81 Credit

Excavator Loan $73025.81 Debit

 

But how do I also debit the $30,000 from owner investments to reflect the amount we personally used? Every way I try to add it says it's not in balance.

We added the personal money ($30,000) to the business account and then put it in quickbooks as "owner investment" and then paid the lump sum out of the business account. 

 

Please help!

 

2 Comments 2
Rustler
Level 15

How to enter loan payoff paid with business and personal funds

deposit the 30K and use the owner equity or better owner equity investment account as the source account for the deposit
write the check for whatever amount you need to and use the liability business account as the expense (reason) for the payment

Mandlseptic
Level 1

How to enter loan payoff paid with business and personal funds

Hi, 

Yes sir, that's what I did. But now I have $30,000 in my Owner Investment Equity account on my chart of accounts.. I thought that account should reflect those funds being used as part of the payoff, rather than sitting in the equity account on my books. 

I really appreciate the answers! 

Rachel

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