Loan Capital and Interest in a single transfer


I’m a bit confused now on how to log loan repayments.
What I did so far:

I received a loan of £15k on my director’s account (imported with bank feed) and tagged it as “This is a bank transfer from Loan Account”.

The Loan account I created had then, in Money Out, £15k , (Balance -15k)

During the first 6 month I only paid the interests back from the director’s account. I followed the guide and tagged them as “Something else not on the list” -> Category Loan Interest Paid.

Now I start repaying both Capital and Interest at the same time. I tagged the “Money Out” from my current account as a bank transfer to my Loan Account. The problem I see is that at the end of all my repayments, my Loan Account will be in positive (by total interest minus 6 months worth) instead of being equal to 0.

How to account for Loan repayment when both Capital and Interests are debited at the same time from the current account?

Many thanks

you can do one journal to move interest from loan a/c to loan interest nominal

Dr Interest on loan
Cr loan a/c

Thank you very much!

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