Adding Loan Entry
Adding loan entry:
Click on “Manual Journal Entries” from the “Accounting” dropdown menu
and you will be automatically directed to the “Manual Journal Entries” main page. To create a “New Manual Journal Entry”, click on the “New Manual Journal Entry” icon.
You will see fields for creating a new “Manual Journal Entry” where you can:
Type in the “Description” and set the “Date”.
Select “Long-Term/Short-Term Loans” from the “Account” dropdown list and determine the amount in the “Credit” field due to the nature of the credit account.
You can add other accounts by clicking on “Add more”.
You can add the account into which the loan was deposited, be it “bank account”, and you can determine the amount in the “Debit” field due to the nature of the debit account.
If the loan interest is available (for example 10%), you will be able to add an account for “loan interest” or “loan expenses” and determine the amount (10% loan amount) in the “Debit” field.
Then, click on “Save” to complete the process.
To learn more about how to add new accounts, click here (the Chart of Accounts link).