How do you record entries for a loan? (2024)

Hello there, @Recycler70.

I'd be glad to guide you on how to record entries for loans in QuickBooks Desktop (QBDT).

To begin with, for theinterest-only payments, you can write a check posted to the appropriate expense account used for tracking loan interest. But first, you'll have to set up an expense account.

Here's how:

1. Go to theListmenu, then selectChart of Accounts.
2. Right-click anywhere, then selectNew.
3. SelectExpense, thenContinue.
4. Enter the account name for the interest payments or fees and charges, Then selectSave and Close.

To record the loan amount, deposit it forCash loans. Here's how:

1. Go to theBankingmenu, then selectMake Deposits.
2. If the payments to Deposit window open, selectCancel.
3. In the Make Deposits window:

• In theDeposit Tofield, select the account to deposit the loan into.
• Check theDateand enter an optionalMemo.
• In theFrom Accountcolumn, select the Liability account.
• In theAmountcolumn, enter the loan amount.
• SelectSave & Close.

For theNon-cash loans. You'll have to create an asset account by going to theCOAand then creating a new one. After that, select an account type for your non-cash loan eitherfixed asset,other current asset,orother asset. Then, selectContinueto enter the name and number of the account. When you're done, selectSave & Close.

After that, you'll have to enter aJournal Entryby going to theCompanymenu, and then selectMake General Journal Entries. Enter theDateandjournal entry number. Select the first line and debit the loan asset account. Then, select the second line and credit the liability account. Lastly, SelectSave and Close.

Once done, record the loan payments. Here's how:

1. Go to theBankingmenu, then selectWrite Checks.
2. Select theBank Accountyou want to use to pay the loan.
3. Verify theCheck NO.andDate.
4. In thePay to the Order offield, select the name of the bank.
5. In theExpensestab:
   1. On the first line, select the liability account then enter the payment for the principal amount.
   2. On the second line, select the interest expense account. Then enter the payment for the loan interest.
6. (Optional) Memorize the check if you want QuickBooks to automatically enter the payment at regular intervals.
   1. SelectMemorize.
   2. Fill out the fields as needed.
   3. SelectOK.
7. When you’re done, selectSave & Close.

For more detailed information, you may refer to this article:Manually track loans in QuickBooks Desktop.

I'll also add this article to guide you match your bank and credit card statements:Reconcile an account.

Please don't hesitate to clickReply, if you have further concerns about recording loans or other QBDT-related concerns. I'll be here to further assist you.