How to record loans correctly?

[Glenn]

@EnochCollege

I don’t understand this method. If I set the opening balance of a loan account to say -£1,500 it does not show an increase in the bank of £1,500 so when I enter in my purchases it will not reconcile as it will think there was no money to pay for them?

This method assumes the loan was made prior to using QuickFile (I’ve just edited the post to clarify), in the case of a new loan you would enter a “money in” transaction on your current account equal to the loan issued and tag this as a bank transfer to the loan account. The remaining steps are the same in terms of loan repayments.