Skip to main content
January 30, 2020
Question

My family loaned us some money and we are paying her back through our business account how do i enter this on quickbooks ?

  • January 30, 2020
  • 1 reply
  • 0 views
Original commenter did not share additional details

1 reply

January 30, 2020

We'll set up a liability account first to record the loan, stuart.bembridge. 

 

Once done, we can now record the money you got from the loan and then its payment. Let me walk you through the steps:

 

Set up a liability account

  1. From the left menu, click Accounting and select Chart of Accounts. 
  2. At the upper-right, click New. 
  3. Select Long Term Liabilities from the Account Type drop-down. Other Current Liability on the other hand if you wish to pay off the loan at the end of the current financial year. 
  4. Select Notes Payable under Detail Type
  5. Enter a Name for the loan, and the full loan as a negative amount in the Amount field.
  6. Click Save and close

Create a Journal Entry to record the money you got from the loan. 

  1. Go to the ( + ) New button from the left panel and click Journal Entry.
  2. Select the liability account we created on the first line and enter the loan amount in the Credit column. 
  3. Under the Debits column select the appropriate asset account. I also suggest reaching out to your accountant on what account to use. 
  4. Hit Save and close.

For the loan payment, we can use the cheque.

  1. Still from the New option, select Cheque
  2. Add a cheque number.
  3. Enter the following information in the Category Details section.
    ·        First line: Liability account for the loan and the amount of payment.
    ·        Second Line: Expense account for the interest and the amount.
    ·        Other lines: Any additional fees with the appropriate accounts.
  4. Click Save and close.

Reach out to me if you need more help.