Loan help please

1

Good afternoon,

I realise there are quite a few existing posts re. this topic, but just wondering if someone can please point me in the correct direction. I have a motor vehicle loan that I would like to record in my Manager. It is an existing loan-let’s say there is $30 000.00 remaining to be paid on the loan.

Initially I set up the loan as a bank account and entered the account with the Starting balance as -$30 000.00 but I have since deleted that account and set the loan up as a liability account, with the starting balance as a credit of $30 000.00.

I have set up the following expense accounts in my chart of accounts:

Screen Shot 2021-01-12 at 1.23.06 pm
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I have the bank account that is used to make repayments to the loan set up in Manager I can easily make, like the following, which adjusts both the bank account and the liability account to the correct balances.

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My issue is, I do not know how to record an expense to the ‘repayment on loan-principal’ expense account-as I want the expense of the loan repayment to display as an expense-if that is at all possible.

Thank you,
-HC

2

You misunderstand what you are paying. Repayment of the loan is not an expense. Purchase of the car was the expense. Only interest and fees are expenses among the three components of a current payment. So you have too many accounts involved.

That ignores the fact the car must almost certainly be capitalized as a fixed asset and its cost recovered through depreciation.

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