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Acct42MB
June 12, 2021
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Setting up Loan and repayment

  • June 12, 2021
  • 1 reply
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I'm new to QB.  I have a new loan for a equipment purchase.  I set up a Long Term Liability account.  Am I supposed to enter the amount of the loan as a negative?   When I first set up the account it asked what the balance was on that day so I entered a positive amount but then I read some Q & A's and it said to enter as a negative so I'm just confused. 

When I make a payment direct from my checking that is set up in QB's, how do you properly enter it?  Thank you in advance!

Best answer by Adrian_A

Hello there, 2BMB2019.

 

You'll have to enter the amount as a positive transaction.

 

Here's how we can record the loan:

 

  1. From the Accounting tab, select Chart of Accounts.
  2. Select New to create a new account.
  3. From the Account Type ▼ dropdown, select Non-current liabilities.
  4. From the Detail Type, select Notes Payable (or Loan Payable).
  5. Give the account a relevant name.
  6. Choose when you want to start tracking your finances. In the Balance field, enter the amount in the account, and determine the as of date. 
  7. Select Save and close.

 

When you're ready to make a loan payment, you can check this guide: Record a loan repayment.

 

I'll be around if ever you need my assistance. Keep safe!

1 reply

Adrian_A
Adrian_AAnswer
June 12, 2021

Hello there, 2BMB2019.

 

You'll have to enter the amount as a positive transaction.

 

Here's how we can record the loan:

 

  1. From the Accounting tab, select Chart of Accounts.
  2. Select New to create a new account.
  3. From the Account Type ▼ dropdown, select Non-current liabilities.
  4. From the Detail Type, select Notes Payable (or Loan Payable).
  5. Give the account a relevant name.
  6. Choose when you want to start tracking your finances. In the Balance field, enter the amount in the account, and determine the as of date. 
  7. Select Save and close.

 

When you're ready to make a loan payment, you can check this guide: Record a loan repayment.

 

I'll be around if ever you need my assistance. Keep safe!

A
Acct42MBAuthor
June 13, 2021

Adrian, thank you so much for taking time to respond.  I think I got it now.  Thanks again! 

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