Hello, i just realised when looking at a summary of the business income that it was higher than expected due to the fact that i had inputted 2 loans as receipts into the business bank account. I obviously need that money to show up in the balance of cash at bank but obviously it isnt income in the true sense of the word, so please can someone advise how i should do it?
thanks in advance
Richard
The answer will depend on what type of loans are they
Are they loans from directors or owners or of the business?
Are they loans from third parties - investors? banks?
Are they loans to purchase fixed assets?
Are they loans for working capital?
If you search “Loans” in the Guides or Forum you will see a variety of ways of accounting for a loan
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When entering the receipt to record proceeds of the loan being deposited into your bank, select the liability account where it will be posted. If you have not created such an account, do that first. Read Add an ordinary account | Manager and Record a receipt | Manager.
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Thanks to you both, have it sussed now.