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Hi, we recently refinanced our house and included several loans from another bank for rental properties. How do I journal that to show that the business loans were paid off and we assumed the liability. I keep separate books for the rental and personal and in the past have always made a journal entry that showed loans to or from shareholder to show the liability to us from the company.
Is that correct and can someone show me what the journal would look like?
Thanks
Solved! Go to Solution.
Assuming the loans that were paid off were listed as liability accounts in the business books
debit each loan for the amount that paid it off
credit shareholder loan (liability account) for the total
@Rustler wrote:
Assuming the loans that were paid off were listed as liability accounts in the business books
debit each loan for the amount that paid it off
credit shareholder loan (liability account) for the total
Thanks very much, Rustler
. I thought that would be the way to handle it, just making sure. So the business has a liability to me personally once the loans are paid off.
Assuming the loans that were paid off were listed as liability accounts in the business books
debit each loan for the amount that paid it off
credit shareholder loan (liability account) for the total
@Rustler wrote:
Assuming the loans that were paid off were listed as liability accounts in the business books
debit each loan for the amount that paid it off
credit shareholder loan (liability account) for the total
Thanks very much, Rustler
. I thought that would be the way to handle it, just making sure. So the business has a liability to me personally once the loans are paid off.
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