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SQM
September 14, 2023
Question

How do I categorize a returned mortgage payment?

  • September 14, 2023
  • 1 reply
  • 0 views

My bank returned my last Mortgage payment (it was extra), how do I document this in QBO?  (doesn't matter but it was automatically paid at first but I sold the condo so it became an extra payment).  

1 reply

D
Dan_Sandler
October 7, 2023

@SQM  

 

Did you have a liability setup for your mortgage payment?

The entry should be to Debit Mortgage Payable and Interest Expense, and the other side should be to credit the cash account used to pay the mortgage.  If you did have that correct setup, then the entry to book the returned mortgage payment should be the opposite entry (Credit payable/Interest and Debit Cash).

 

Did you journalize your payment to the mortgage prior to making the entry to clear the mortgage?

The answer will assist in next steps.

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