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.

Level 15

Talk about your business

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.