Loan account

Hello @twistgrip

You would record the total amount of the loan (excluding interest) received into a liability code.
when you come to make a payment on the loan the transaction would be in two parts (the capital paid and the interest).

You would pay x amount off the overall loan to reduce the liability and you would pay x amount of interest recorded as an overhead.

You would repeat this process each month until you’ve repaid the loan (and the liability will be clear).

Please see the link below for more information.