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Record the owner's loan and payment to the company

This article will walk you through recording and paying the an owner's loan.

Detailed instructions

Step 1: Create the loan account:

  1. From the List menu, choose Chart of Accounts.
  2. Click the Account button and choose New.
  3. Select Other Account Types and choose:
    • Other Current Liability if the loan is going to be paid within 12 months.
    • Long Term Liability if the loan is not going to paid within 12 months.
  4. Click Next
  5. Fill out the necessary information and click Save & Close.

Step 2: Record the loan

  1. From the Company menu, choose Make General Journal Entries.
  2. Enter the date.
  3. On the first line, choose the liability account you created.
  4. Enter the amount of the loan as a credit.
  5. On the second line, choose the owners draw account.
  6. Enter the amount of the loan as a debit.
  7. Click Save & Close.

Step 3: Record the loan payment

  1. From the Banking menu, choose Write Checks
  2. Select the Payee and date.
  3. Under the Expense tab, select the loan account.
  4. Enter the Amount.
  5. Click Save & Close to close the Write Checks window.

KB ID# HOW20062
10/25/2016 3:16:11 AM
PPRDQSSWS407 9138 Pro 2017 53e6f5