How to create a loan account

[Johanna]

Please can you assist on how to open a Loan account, we have received a Loan from a company and not sure how to proceed with this.

[Joe91]

A loan to the business is recorded as a Liability account. This is created in Settibgs / Charts of Accounts

The money received is recorded using a Receipt transaction

Repayments are recorded using a Payment transaction

Interest charged would be posted to an expense account

[Manager_User]

Here is a post made about your question.

Loans

Assuming you mean for your business to receive a loan from someone else, go to Settings - Chart of Accounts, and create a Liability Account for the Loan you wish to track. You can set an opening balance if required when creating the account. To receive a loan, go to Cash Accounts, Select the cash account the loan will go to, and Receive a payment to the cash account (Received In), and select the Loan account you created (Account) for the loan funds to be entered into. Making a loan payment is …

[sjnotebook.com]

Hi,
I am unable to find an option to set a beginning balance when creating a Liability Account. I received a loan from an individual and need to make monthly payments without interest.

[ries]

Assuming you received the loan money amount by bank.
Under [Receipts], book the amount in the account [Loan Eric] and indicate in which bank you received the amount.
Then in the summary, the general ledger account [Loan Eric] should show a credit amount, and the general ledger account Bank should be debited.

When paying go to [Payments] and book the paid amount in the same way.

[sjnotebook.com]

Thank you very much! It worked extremely well.