How to record a loan receivable in quickBooks

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How To Record A Loan Receivable In QuickBooks ​

To record a loan that is receivable in QuickBooks Desktop software in your chart of accounts, so that it will not show you in the ageing report as account receivable. To do that, follow the given means:

  • Open the QuickBooks Desktop software and then click on the given List menu.
  • Now you need to tap on New which is on the drop-down in the Account section.
  • Choose the other account type.
  • After that, select other current liability option or the other one which is long term liability and then you need to tap on Continue.
  • Fill in the details required, then tap on save and then close it.                                  

These are the steps that will help you to record a load receivable in QuickBooks Desktop software.

How to set up a loan receivable in QuickBooks Desktop software

To set up a loan receivable in QuickBooks Desktop software, you need to follow the steps that are as follows:

  • Open the QuickBooks Desktop software and then tap on the given Lists option.
  • When you open the Lists option, you will see the Chart of Accounts option open that.
  • Now you need to look for the option New that is in the drop-down of the Account option.
  • In the Account section, select the Other Account Types and the go to the Other Current Asset which is given on the drop-down and then tap on continue.
  • Now you need to fill in the details required in the form. After that first tap on Save and then on Close.

These are a few steps that you need to apply to set up a loan receivable in QuickBooks Desktop software.

How to record a loan from an owner in QuickBooks Desktop software

To record a loan from an owner in QuickBooks Desktop software, you need to follow the given means:

  • Open the QuickBooks Desktop software and then open the Settings option.
  • Choose Chart of Accountants and then tap on option New.
  • When you open the option New, then you will see the ‘Account’ option open that.
  • After opening the Account, choose Current Liabilities or Non-current Liabilities from the Account in the given drop-down, that depends on what kind of loan and the time window to repay it.
  • Go to the drop-down list, either chose loan payable, notes payable or the current liabilities.
  • Please write down the essential details like the client’s name, position and the company’s name.
  • The unpaid balance option needs to be left out as blank, then tap on save and then close.

These are the steps that will help you create the liability account. The next thing that you need to do is to create a journal entry in your books or accounts for the loan. Creating a journal can prove to be a massive advantage for you so that you have a particular record maintained for you and your organisation for the Sales Tax that you need to pay once that year ends. To create a journal entry, you need to follow the given means:

  • Open the QuickBooks Desktop software and go to the option New.
  • Now under the Other section, you need to tap on the Journal Entry option.
  • Now you need to enter the amount of the loan in the expense account cause in journal entries both the debit and the credit sides need to end on the equal amount.
  • After performing all the actions given above, you can tap on save and then close.

These steps will help you to create a journal entry in the QuickBooks Desktop software. You can also learn to record a loan to an employee in QuickBooks Desktop software which is what our next segment is all about.

How to record a loan to an employee in QuickBooks Desktop software

To record a loan to an employee in QuickBooks Desktop software, you need to follow the steps that are as follows:

  • You need to open the Employees section, then look for the particular employee’s name, and then tap on the ‘Edit Employee’.
  • Now to edit any deduction, there will be an icon similar to Pencil and then click on the Add a new deduction option.
  • Now tap on the New Deduction / Contribution tab which is lying in the drop-down option of the Deduction/Contribution to add a new field in the deduction.
  • Tap on the other deductions from the Deduction/Contribution given in the drop-down.
  • Select the Loan Repayment or Cash Advance Repayment in the same Type drop-down also the Description field is optional.
  • Now you need to enter the deduction amount and then tap on OK.                                 

These are a few steps that will help you to record a loan to an employee in QuickBooks Desktop software.

Conclusion

In conclusion, QuickBooks Desktop software allows you to perform multiple things that make managing the account very easy. The idea of this post is to inform you about the loan receivable in the QuickBooks Desktop software and the different aspects related to it, so please read the whole post carefully. Hope that this post helps and worth the time that you spend here.

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Cpadesk
Cpadesk

CpaDesk Is An Online Accounting Forum/ Community That Brings Accounting Advisors, Students, And Those Who Are Looking For Knowledge And Information.

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