Change principal loan amount

Hi, @vallaeys.

I appreciate the detailed information about your concern together with the screenshot. I'm here to share some steps to resolve your loan amount in QuickBooks.

Since you already repaid the loan including the interest, your reported profit should be zeroed out. You can create another journal entry for this since it was first added in 2020 to resolve the discrepancy in your reconciliation.

Here's how:

1. Click the + New.
2. Select Journal entry.
3. On the first and second lines, select an account from the Account field.
4. Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other. This means the accounts are in balance.
5. Enter information in the memo section so you know why you made the journal entry.
6. Hit Save and new or Save and close.

For more details, see this article: Create a journal entry in QuickBooks Online.

Upon sharing the steps above, I'd still suggest consulting your accountant since it's an old transaction. They'll be able to share the correct accounts to use and how to zero out your transaction. Also, Intuit offers a Find-a-ProAdvisor service for business owners to connect with QuickBooks certified accountants and bookkeepers.

Additionally, I've added these articles that will guide you in recording bank deposits and reconciling your accounts to match your bank and credit card statements:

• Record and make Bank Deposits in QuickBooks Online
• Reconcile an account in QuickBooks Online

Contact us anytime in case you have other questions. The Community is always around to back you. Take care!

Okay, so a journal entry is what I did. I was surprised though that it increased our reported profits for 2022 by $4.9k even though it should have only impacted our liabilities (not our income). Or am I getting this wrong?

Thanks for getting back to us, @vallaeys.

I'll share some information to correct your journal entry. You'll want to make sure you're debiting and crediting the correct accounts. This way, your liability accounts will post the correct amount. 

If you're unsure of how it should be posted, I suggest consulting your accountant. Please refer to the above links to find one. I've also added this article for your reference on how to set up and record loans in QuickBooks.

With this, you should be able to correct your journal entry and your accounts.

Additionally, here's a link that'll help you manage your accounts in QuickBooks: Find help with your bank accounts.

Please let me know if you need help with anything else. I'll be around for you. Take care and have a great day ahead.