Showing results for 
Search instead for 
Did you mean: 
Level 1

Paying on loan that has already been spent

I am setting up our Quickbooks account for the first time.  We are currently paying on a loan.  I have found the directions on how to create the liability and assign the payments.  However, it also says I need to enter the loan as a deposit.  The loan money was spent prior to the date of when we started the account.  If I enter the loan as a deposit it is going to create income that we no longer have.

1 Comment 1
Level 15

Paying on loan that has already been spent

There is no Deposit.

You are asking about Balance Sheet as part of Trial Balance.


Money in the bank is a Deposit that Increases Equity.

Liabilities are loan balances that Decrease Equity.




Debit Equity and Credit Liability for the current Balance owed = we still owe for this.


Banking menu > Enter Credit Card Charges, for the current Unpaid statement, if the details of that spending are in the current cycle. If that is a carry over balance from the prior fiscal year, then this one entry, on the Expenses tab = Equity, as in We Still Owe for this.


Debit Asset and Credit Equity for the Fixed Asset basis = we already have possession of this for this Cost Basis.


Debit Equity and Credit Depreciation for assets = we already reported this as tax expense in prior years.



Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up

Need to get in touch?

Contact us