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vbucy
April 4, 2019
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Business Loans paid by House Refi

  • April 4, 2019
  • 1 reply
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Hi, we recently refinanced our house and included several loans from another bank for rental properties. How do I journal that to show that the business loans were paid off and we assumed the liability. I keep separate books for the rental and personal and in the past have always made a journal entry that showed loans to or from shareholder to show the liability to us from the company.

 

Is that correct and can someone show me what the journal would look like?

 

Thanks

Best answer by Rustler

 

Assuming the loans that were paid off were listed as liability accounts in the business books

debit each loan for the amount that paid it off
credit shareholder loan (liability account) for the total

1 reply

Rustler
RustlerAnswer
April 10, 2019

 

Assuming the loans that were paid off were listed as liability accounts in the business books

debit each loan for the amount that paid it off
credit shareholder loan (liability account) for the total

    V
    vbucyAuthor
    April 10, 2019

     

     

    @Rustler wrote:

     

    Assuming the loans that were paid off were listed as liability accounts in the business books

    debit each loan for the amount that paid it off
    credit shareholder loan (liability account) for the total

    Thanks very much, Rustler

    . I thought that would be the way to handle it, just making sure. So the business has a liability to me personally once the loans are paid off.

     

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