How To Enter Loan In Quickbooks Register

We can enter the transaction into quickboosk check register by using the split function and charging the equipment account for the full purchase price and charging a loan payable for the difference between the purchase price and amount paid.

How to enter loan in quickbooks register. Add the loan account to the chart of accounts in quickbooks. When the check is written in quickbooks each month this is when i would use a quickbooks memorized transaction to save time by the way you split the transaction into three separate lines. Enter the loan amount in the credits column. Enter the same loan amount in the debits column. Deposit the loan amount to deposit the loan amount click banking in the main menu and then select make deposits in the context menu.

Open up the chart of accounts by using the lists tab on the top menu bar. Open the write check window ctrl w enter the bank name date and amount. Enter line one to the loan account being paid this is the principal enter line two to an interest expense account this is the interest save down the check. Proceed to the account register below. Whenever you record expenses or purchases you can select your bank account as the payment account.

One line is the principal payment applied towards the long term liability to slowly pay down the loan and the second is the interest payment booked under an interest expense account. This puts the entire loan amount into your bank account. When the new account window opens look under the assets and liabilities section click on loan and click continue. Once we re done with that we ll go in and look at the loan manager that quickbooks has. But for now let s go ahead and get into setting up loans.

This is section one. Remember in accounting there are two types of loans. Click ctrl and n to create a new account. If the payments to deposit window opens click the cancel. There are the short term or the other current as quickbooks calls them and you ll see several of those over here.

For more accounting information see accounting website.