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Susy1000
June 27, 2021
Question

How to record a cash loan by hand

  • June 27, 2021
  • 2 replies
  • 0 views

Hi¡

In my company we received a loan from one of the partners. It was cash and it was delivered by hand, not through the bank. 

How can I record this in my QB without going to bank accounts?

Thanks¡

2 replies

carolineambrozio
carolineambrozio
June 28, 2021

Hi @Susy1000,

 

I'd be happy to point you in the right direction. 

 

I'm not an accountant, but if i were performing this task, I would do the following journal entry:

Debit: Cash

Credit: Loan - (partner name)

 

Because this transaction falls into accounting territory, it's best to reach out to your accountant to make sure all the appropriate accounts are adjusted as they are trained on how to do this. If you don't have an accountant no need to worry, we can help. You can go to My Accountant>Find a pro to help to find an accountant in your area.

 

If you require any further assistance, reach back out. Have a magnificent day!

 

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    Susy1000Author
    June 29, 2021

    Thank you very much for your reply, it was very helpful!

      T
      Tammy_H
      June 29, 2021

      I'm glad to see that you've gotten the help you were looking for. Good Luck with your entries and have a fabulous evening!

      L
      LauraAB
      June 28, 2021

      Hi Susy1000,

       

      I know that these kinds of transactions can be a bit tricky to record in QuickBooks Online. One of the beauties of the program is being able to choose the accounts and payment methods that suit your needs. carolineambrozio has you off to a good start with her suggestion of considering a journal entry and consulting an accountant, and I'd like to expand upon those options a bit.

       

      In QuickBooks Online, it's possible to set up a number of kinds of accounts, including cash, bank, and credit card accounts. You can even set up accounts for loans, which this article walks you through in detail: Set up a loan in QuickBooks Online.

       

      The key thing to consider with your situation is where the money is coming from and where the money is going to. For instance, a cash account would signal an account in your company that uses cash. It'd be similar to a cash on hand or maybe even a cash in drawer situation. Instead, you'll want to think about where you allocated the cash received from the partner. For instance, if it was deposited to a bank account, you'll want to reflect that there, and the article I've just shared can help.

       

      Please feel free to take a look at that article to learn how you can get started with this, and then consult an accountant if you had any further questions. If you'd like to learn about the different kinds of accounts in QuickBooks Online, this is another useful article: Learn about the chart of accounts in QuickBooks

       

      Wishing you the best with this.

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