Good day all,
I recently started a business where I received capital in the form of loans from multiple people, some with interest and some without. I am new to the software with a limited knowledge in accounting practices. What would be the correct way to enter these in to my books?
Under Balance Sheet > Liabilities you could create a single Loan account and deposit all loans received to that account, however, if you want to keep track of each loan separately then I suggest you use Special Accounts - Read here first Manager Cloud
I have created the loan account, but as my question stated I am unsure how exactly to enter the transaction.
When I create the journal entry the loan account pops up but it does not give me the option to deposit the money in to my bank or cash account. It only gives me the options (Income, expenses, liabilities and under equities retained earnings).
So what am i doing wrong?
You should be using a Bank Transaction > Receive Money, not a Journal Entry.
Ah, i see. Thank you