I had borrowed some money for my business so I recieved money and created a liability account called loans. Now I paid back the loan along with a share of the profits from the project. I have no idea how to record that transaction. Any help would be much appreciated.
Use a Spend Money with the liability account on one line plus the Retained Earnings account on the next line for the share of profits amount.
However, can the share of profits amount be considered as an interest charge, if yes, then use a P&L > Interest Paid account instead and then that could reduce your profit and hence could reduce your tax payable on that profit.
Thanks. That was very helpful