Tagging Loan Repayment

I have a question related to the tagging of entries related to a loan. I started my business in 2014 and borrowed £1000 from my wife. In 2015 I borrowed another £2000 from my wife making an outstanding debt of £3000. I repaid both of these loans as a lump sum in March 2017.

I only have my data in QuickFile back to the beginning of Apr 2016 so no record of an outstanding loan is recorded. However I now need to tag the loan repayment of £3000 to account for it correctly.

Should I create a new bank account for the loan with a starting balance as of 1 Apr 2016 of £3000 and then tag the repayment as a bank transfer into that account to clear the debt?

ps - I initially asked this question on the back of a closed thread that was about a similar issue but that thread seems to have been resolved so I was unsure if it would be flagged up again. Sorry if I should not have done that.

Yes you would create a bank account although you would set the opening balance to - £3,000. This will then show as a liability on your Balance Sheet.

When it’s time to repay the loan you would tag the money out from your current account to the loan account. This would bring the loan account back to zero.

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