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A
aleksandras2
May 13, 2022
Question

Loan Payable

  • May 13, 2022
  • 1 reply
  • 0 views

Hello,

I have a Loan recorded as "Loan Payable" through a Journal Entry. However, when I am reconciling the bank account, the deposits that came in for this loan are showing up as needing to be reconciled. Do I need to also record the deposit in QuickBooks? If not, is the Loan Payable automatically increasing my cash or how does this reflect? Do I do anything with the reconciling item from the bank, do i exclude it?

Additionally, a part of our loan was considered due to payments made on our behalf through a Credit Card. Should I record those payments to the vendors as well and record the CC it came from? Otherwise, how would I record the amount that was given to us through a loan for a specific vendor? 

 

1 reply

Rainflurry
Rainflurry
May 13, 2022

@aleksandras2 

 

If you are receiving deposits on a loan you made, it is not a loan payable, it is a note receivable.  Make sure you have a note receivable asset account set up.  The journal entry to record the loan would be to debit note receivable and credit cash for the amount of the loan.

 

When you download the bank transactions, you can add them or match them if you have entered them already, or exclude them.  You need to split the payment between the note receivable asset account (principal portion of the payment) and interest income account (interest portion of the payment).  This will increase your cash balance, reduce the note receivable balance, and book interest income.

 

I'm not sure I understand the last part.  Can you explain in more detail?  Did you loan money to a vendor and fund the loan with a credit card charge?

 

 

A
aleksandras2Author
May 13, 2022

Hi,

Thank you for your response. So the loan was actually made to us, not from us which is why we made it as the loan payable.

H
Hector12
May 14, 2022

Same Problem.

Fist off, I am a QuickBooks noob. I use QuickBooks online and bought a vehicle for my business. I put down a down payment, and then financed the rest. I made a long-term liability for the loan, but did not add any journal entries in the register yet so it says $0.00. I created a Fixed Asset and recorded my down payment since I paid it with my business account that is linked to QuickBooks. So the Asset Register shows the down payment in the journal entries, with the dollar amount showing up under “increase” column.

I used the QuickBooks help chat and it was a long and wild ride but the person or bot helping me walkthrough how to add a loan never figured it out…just kinda had me go round and round and then responded with lots of “hmm…”s.

My question is (I think), how do I add the loan to the asset and then can track each loan payment?

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