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A
arkvalleyinfo
December 7, 2018
Question

What entries do I make to pay off one loan with a new loan?

  • December 7, 2018
  • 1 reply
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1 reply

john-pero
john-pero
December 7, 2018

Journal Entry net=0

Debit old loan

Credit new loan

 

Unless cash is involved, then you can use either "check" if you had to add money or "deposit" if you received extra. In both of those transaction types you can directly enter the old and new loan accounts in and out

    O
    ohbeebee
    March 7, 2020

    If i have an existing line of credit for $50,000 and I am getting a new line of credit for $75,000, how would i enter the new loan so it would pay off the one loan but leave the available monies in the new line? 

    C
    CrissyKnny
    March 12, 2021

    I am curious as well.  When we received a new loan, the amount financed paid off the old loan that the lending company sent on our behalf.  I can not seem to figure out how to apply it to the old loan while keeping a balance on the new loan.  

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