Permanently Restricted accounts

Hi there, @Anne.

Let me guide you on how to record your loan payment coming from your restricted account.

Take note that QuickBooks records the payment for the principal amount as a deduction to the liability account. Once you complete all the payments, the value of the liability account will turn to zero. Also, it records the interest payment as a company expense.

Here's how:

1. Go to the Banking menu.
2. Select Write Checks.
3. Choose the Bank Account you want to use to pay the loan.
4. Verify the Check NO. and Date.
5. In the Pay to the Order of field, select the name of the bank.
6. In the Expenses tab:
   1. On the first line, select a liability account, then enter the payment for the principal amount.
   2. On the second line, choose the interest expense account, then enter the payment for the loan interest.
7. Once done, click Save & Close.

Just in case, you want to keep track of your loans and be reminded about upcoming payments, you can track and manage your loans with the QuickBooks Loan Manager.

Please let me know if you need further assistance. I'm always happy to help. Have a nice day.