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Need HELP with creating a LOANS entry

chriskylepeterschriskylepeters Member Posts: 1

Hey guys, i'm really new to this whole accounting thing. I recently received a loan from a party and since my bank is connected to my account it has automatically been added to the accounting section. I have tried to put it under loans but it ends up creating another entry with the same loan amount. I was wondering how do I make a proper entry for this? Also I have just paid the amount back. How and where do I file both the receipt and payment of said loan?

in Accounting Technical Support

Comments

  • SamdSamd Member Posts: 552 ✭✭✭

    Hey @chriskylepeters, you can create a journal transaction to move the loan value from your bank account to a loan account in Wave. (You'll want that account to be a liability account)

    In terms of bookkeeping for the loan repayments, you can follow this guide here: https://support.waveapps.com/hc/en-us/articles/360000041883-How-to-account-for-a-loan

    Essentially, to account for the repayment, you'd also be doing this with Journal Transactions, where you are debiting the Loan account and crediting your business account. If you paid any interest on the loan, the guide also breaks how to accomplish that.

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