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Record an owner loan to a company and the repayment

Method to record when the owner of a company makes a loan to their company that does not get directly deposited into the bank account (purchase of equipment, payment of other loan, etc) and recording the payments back to the owner properly.


Detailed instructions
  1.  Create the loan account:
    1. Click Lists.
    2. Select Chart of Accounts.
    3. Click the Account button.
    4. Select New.
    5. Choose Other.
    6. From the drop down:
      1. Select Other Current Liability (If the loan will be paid back within 12 months)
      2. Select Long Term Liability (If the loan will not be paid back within 12 months)
    7. Click Next
    8. Give the account a name.
    9. Click Save and Close.
  2.  Record the loan:
    1. Click Accountant.
    2. Select Make General Journal Entries...
    3. Enter the date.
    4. On the first line, choose the liability account you created.
    5. Enter the amount of the loan as a credit.
    6. On the second line, choose the owners draw account.
    7. Enter the amount of the loan as a debit.
    8. Click Save & Close.
  3. Record loan payments:
    1. Click Banking.
    2. Select Write Checks.
    3. Select the payee and date.
    4. Click the Expenses tab.
    5. Choose the loan account.
    6. Enter the amount of the payment.
    7. Click Save & Close.
KB ID# HOW20062
5/5/2016 2:56:11 PM
QYPPRDQBKSWS08 9132 Pro 2016 092e4c