Accounting for loans to other companies

I’m trying to figure out how I should book a loan to another company in Quickfile. I assume I create a loan account, but how do I correctly tag a payment which is made from the current account to a third party which is actually a loan to the other company?

I can tag the payment in the current account, it’s just a normal payment for a purchase, but I can’t see how I then create the entry in the loan account.

I think I’m correct in saying that the loan will appear as an asset in my balance sheet, so the loan appears as a credit in the loan account, but I can’t figure out how I can tag this credit.

Any help gratefully appreciated!

That’s correct, create a loan account and tag the funds sent from the business account as a transfer to the new loan account. This will now sit as a debtor on the balance sheet.

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