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perry.star
November 8, 2022
Question

Hi QB Community,I would like some advice/guidance on how to record hire purchase payments.I have set up the asset account and liability account.

  • November 8, 2022
  • 1 reply
  • 0 views
My confusion comes when I look to add the monthly payment, this need to be taken from the Hire Purchase account as well as the Cash in Hand account as an expense to later show on profit and loss reports.

Any advice would be greatly appreciated.

1 reply

A
AileneA
November 8, 2022

Hello, perry.star. 

 

You did a great job on setting up the asset and liability account as first step. Now let's record the loan payment as an expense in QBO.  

 

Here's how: 

 

  1. Click the + New icon.
  2. Select Expense.
  3. In the Payee field, enter the business or person you received the loan from.
  4. Choose the bank account holding the loan you'll use to make payments from the Payment account dropdown.
  5. Enter the Payment date and select the Payment method from the dropdown.

To enter the payment: 

 

  1. Select the first line.
  2. From the Category dropdown, select the account you used to track this loan.
  3. Enter the total amount of the loan payment in the Amount field.

 

Check this article to learn more: Make a loan payment in QuickBooks Online.

   

To ensure your books are accurate, I'd highly recommend you speak with your accountant. He/She should be able to provide you more expert ways of handling this situation. 

 

Don't hesitate to visit us again should you require further assistance. The Community is always here to help. Have a great day.

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