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kannan-kaastec-c
Level 1

Which category Bank transaction to be added for the loan given to other which is receivable without interest?

I have given loan to company without interest and want to record bank transaction. I am confused in which category and type transaction to be added?
2 Comments 2
LeizylM
QuickBooks Team

Which category Bank transaction to be added for the loan given to other which is receivable without interest?

I understand the importance of the categorization of a bank transaction for a loan given to others, kannan. . It's my priority to ensure that transactions are accurately recorded in QuickBooks Online (QBO). 

 

We can create and set up a liability account so you can record the loan.

 

  1. Go to the Gear icon and select Chart of Accounts.
  2. Click New.
  3. Select Expenses.
  4. Click the Save account under dropdown to choose an account type.
  5. In the Tax Form section, select the detail type that best fits the entry you want to track.
  6. Enter a name in the Account name.
  7. Click Save.

 

I recommend consulting your account to ensure that your specific category is accurate.|

Now you have an account with the full loan amount.  Whenever you need to make a payment toward the loan, you can record it against this account.

 

Then, we can issue a check for the loan. To do so, I'll show you how:

 

  1. Click + New, then select Check.
  2. From the Bank Account dropdown, select the account you used to fund the loan.
  3. From the first line, from the Category dropdown, select the account you created to track loans.
  4. On the Amount field, enter the loan amount.
  5. Click Save and close.

 

I recommend consulting your account to ensure that your specific category is accurate.

 

Then, create a bank deposit for the same amount that went back into your bank account.

 

  1. Click the + New button and then Bank Deposit.
  2. Go to the Add funds to this deposit section.
  3. Enter the amount refunded by the supplier and choose the same Category/Account you selected on the expense transaction to offset the amounts.
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Additionally, I'm sharing this article to assist you in recording the loan and its payments: Set up a loan in QuickBooks Online. 

 

Moreover, utilizing specific account reports can provide detailed insights into various aspects of your business.

 

Feel free to reach out in the Community for further assistance recording your stolen vehicle in QBO. We're always here to help. Take care!

kannan-kaastec-c
Level 1

Which category Bank transaction to be added for the loan given to other which is receivable without interest?

How loan given to others become expenses? I am not sure if you understand my question correctly. I have given loan to company X and want to record properly either account receivable or something which should show in report.