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S
Sheen Solutions
July 9, 2020
Question

Amortization

  • July 9, 2020
  • 1 reply
  • 0 views

If I want to amortized  a loan to the company . How is this been  done in quickbooks?

 

 

The owner used his personal funds to purchase items. This is posted as an expense in quickbooks and charged off  against the bank balance as you will have to select  cash or check to clear amount.  Should I now create an entry in owners equity to record this as this amount has to be  given back. Explain

 

New to Quickbooks

 

Janet

1 reply

G
GraceC
July 9, 2020

Hello there, @Sheen Solutions.

 

We use the owner's draw account (equity account) to track withdrawals of the company's assets to pay an owner.

 

In the meantime, you can create an Equity or Owner's Draw account for your payment. Let me guide you how.

  1. Go to the Gear icon, then click Chart of Accounts.
  2. Tap the New button.
  3. Select Equity for the Account Type, and Owner’s Equity as the Detail Type.
  4. Enter an opening balance, then hit Save and Close.

Once done, you can write a payment check to account an owner's payment.

 

For more information about the owner's draw, see this article: Set up and pay an owner's draw.

 

Don't hesitate to hit the Reply button for your other concerns.

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