Accounting for loans received

I need to input a loan payment received into my accounts but am unsure how to do this? I have had small regular amounts of money put into my business from family and need to include these payments to show I have had these payments given to me to help fund the business.

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First set up a new Quick File bank account for the Loan. Now simply tag any loan funds received into your business account as a transfer from the new loan account set up, similarly, tag any repayments of the loan as a transfer to the loan account.

The loan account will now appear on the Balance Sheet and you will be able to see the amount outstanding and obtain a statement for the loan account.

Thank you Joe,

Will these transactions appear as a debt doing it this way? Also by tagging repayments or tagging funds into my business account show as credits and debts?

Dave :slight_smile:

You’re welcome Dave,

That’s correct, the Loan will appear on the balance sheet as a liability, the interest will go on the P&L as an expense (if any), therefore increasing your loan balance, then any repayments made will reduce the total balance outstanding (Capital + Interest) of the loan.

Tagging repayments of loan as a transfer, will show as money out from your Business Account and money into the Loan Account, therefore reducing your loan balance.

Tagging loan funds received as a transfer, will show as money into your business account and money out of the Loan Account, therefore increasing your loan balance.