There are several different types of loan payments that can be reimbursed in QuickBooks to help keep track of what is owed. Among these are the long-term liabilities, loans from shareholders or owners and loans to shareholders or owners. Each type will have its own method that can be used to reimburse or pay back the loan. Keeping track of these different types of loans is essential to maintain accurate records.
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Open the company file by clicking on the QuickBooks icon. Click the "Company" button in the top menu bar. Scroll down to the "Make General Journal Entries" option and click. When the GJE window opens, note the top two rows of the spreadsheet. There are six columns including the account, debit, credit, memo, name and billable.
Enter the name for the long-term liability into the "Account" box. If it is a vehicle, "Car 1 Loan" will suffice. You will be prompted to add details of this new account. Click "OK" and then in the "Add New Account" window choose the "Long Term Liability" as the account type.
Enter the amount of the loan or amount that was financed in the credit column. Enter the vehicle in the lower row as a fixed asset. You will be prompted again to add a new account, make this a fixed asset account named "Car 1." Enter the amount paid as a debit in the fixed asset row.
Create a check in the "Write Checks" window or in the check register of your bank account. In the account box of the register, choose the long-term liability account that you created. Each payment using this method will reduce the long-term liability amount.
Long Term Liabilities
Create a "Loan From" account. Often in difficult times, the owner or shareholders of a business may loan the business personal funds for a brief period This type of loan should be designated as a short-term loan when you create the new account. Open the "General Journal Entries" window again and enter the amount of the loan as a credit to the account named, "Loan From Shareholder."
Enter the amount of the loan as a debit to the account the loan was deposited into. If the loan was for the purchase of equipment, it is advisable to make the deposit into the bank first and use a check from the bank account to purchase the equipment.
Create a check to reimburse the loan payment. Open the Write Check window, by clicking on the "Write Check" icon or holding the "CTRL" and "W" keys. In the account section of the check, choose the "Loan From" account that you created earlier. Each payment that is entered to reimburse this loan from a shareholder or owner is recorded in this way until the loan is fully repaid.
Create a "Loan To" account. When a company lends money to a shareholder or owner, it is entered as an "Other Current Asset." Open the GJE window and in the "Account" column name it "Loan to Shareholder." You may want to include the name of the shareholder or owner if there is more than one. If the loan was made from the business bank account enter the amount of the loan as a credit and the "Loan To" account as the debit.
Enter all reimbursements from the shareholders when they come as a General Journal Entry. The reimbursement amount will be a credit to the "Loan To" account. Enter the amount of the payment into the "Amount" column. The resulting deposit into the bank account will be entered as the debit.
Loans from and to Shareholders/Owners
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