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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.

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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.

 

Example:

 

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.

 

Etc.

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