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andrea yuriza
Level 1
posted
‎December 13, 2023 10:07 PM
last updated ‎December 13, 2023 10:07 PM

I have loans/ liabilities that dont need to be paid anymore to the 3rd party. how should I execute the transactions?

I have loans/ liabilities that does not need to be paid anymore to the 3rd party. how do I write off these liabilities?
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1 Comment 1
Maybelle_S
QuickBooks Team
QuickBooks Team
‎December 14, 2023 01:45 AM

I have loans/ liabilities that dont need to be paid anymore to the 3rd party. how should I execute the transactions?

Hello there, andrea.

 

In QuickBooks Online (QBO), you can zero out liabilities by creating a journal entry, acknowledging you no longer need to pay, and keeping your accounts payable up-to-date.

 

Here's how:

 

  1. Go to the +New button.
  2. Select Journal entry under Other.
  3. Put the Journal date.
  4. Click the Account drop-down arrow, and choose Accounts Payable.
  5. Enter the amount in the Credit column.
  6. In the second line, select the account.
  7. Place the amount in the Debit column.
  8. Hit Save and close.

 

I also recommend seeking assistance from your accountant to help you choose the correct account.

 

In addition, I've attached a link that will help you manage your invoices, sales receipts, and other sales forms in QuickBooks: Sales transactions.

 

Do you have any other questions in mind about liabilities? Feel free to post them in the comment section. I'll be more than happy to help you again.

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