How To Enter Loan In Quickbooks Register

This is section one.

How to enter loan in quickbooks register. Whenever you record expenses or purchases you can select your bank account as the payment account. Proceed to the account register below. Enter bank transactions into the quickbooks check register to enter a new transaction click on the drop down menu immediately beneath column headers in the check register and select either check or deposit. But for now let s go ahead and get into setting up loans. Remember in accounting there are two types of loans.

For more accounting information see accounting website. Click ctrl and n to create a new account. To book the loan interest first make the payment in quickbooks to the loan. If the payments to deposit window opens click the cancel. 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.

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. Once we re done with that we ll go in and look at the loan manager that quickbooks has. 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. Enter the same loan amount in the debits column.

This puts the entire loan amount into your bank account. Open the write check window ctrl w enter the bank name date and amount. On the second line select the appropriate bank account from the account dropdown. Deposit the loan amount to deposit the loan amount click banking in the main menu and then select make deposits in the context menu. 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.

Add the loan account to the chart of accounts in quickbooks.