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Level 1

Line of Credit


I have 2-3 of line of Credit which are paid off and should have 0 balance while they are showing either negative balance or positive balance. All line of Credits are paid off over a year ago and still shows balance.
How should I clean up this mess. Please help. 

1 Comment 1

Line of Credit

Hello @Nids,


Thank you for posting here in the Community. Let me help you clear the balance in QuickBooks.


I recommend you perform some basic troubleshooting to clear the balance. You can start by reviewing the payments and making sure you selected the right accounts under the Category section.


Here's how:


  1. Click the Gear icon in the upper-right corner and select Chart of accounts.
  2. Search for the account, then press View register1.JPG
  3. Edit the payment.
  4. In the Payee field, select or enter the name of the financial institution.
  5. Select the bank from the drop-down list in the Bank Account field.
  6. In the Category details section, select Line of Credit from the Category Type field.
  7. Enter the amount you want to pay down the principal.
  8. In the Category details section, select Interest paid from the Category field and enter the amount you want to pay down the interest.
  9. Select Save.

Also, please ensure the payment date of the transactions is correct. This way, the system will be able to zero out the balance in QuickBooks.


For additional reference, you can use the following article to learn more about how the chart of accounts work: Understand the chart of accounts in QuickBooks.


Feel free to hit that Reply button if you have additional questions. Have a great day ahead.

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