Setting up an account for a loan made to private party out of business funds
I have another question!
The owner did the same, he loaned to a personal party but, the check sent was for $3500.00, the total loan amount is $4000.00, I guess just a base amount for interest. How do I add the additional $500.00 after the check is made out for $3500.00
If you're charging the customer with interest, you can record it by making deposits and enter the principal amount of the payment on the first line. On the second line, use your Interest Income account and enter the amount of the interest.
You can follow the step given by my colleague KhimG when making deposits.