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theaccountant1998
June 2, 2022
Question

LOAN

  • June 2, 2022
  • 1 reply
  • 0 views

I just have a quick question. We had a loan from the bank to buy equipment for the office. It was auto debited from our checking account. The auto-debited amount included principal and interest. The problem is we were not able to record the interest. If we record the interest expense, what would the offsetting credit be?

1 reply

Rainflurry
Rainflurry
June 2, 2022

@theaccountant1998 

 

The offsetting credit is cash (bank account).  As it sits, your bank balance in QB is over by the interest expense amount.  Crediting cash will reduce it.

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