Loan Journal Entry

This article explains how to record a manual Journal Entry to add a new loan to the organization, including how to include loan interest within the same entry.

Path in Qoyod

Accounting › Manual Journal Entries › Create Manual Entry

Steps

1. From the “Accounting” menu, open “Manual Journal Entries”.
2. Click “Create Manual Entry”.
3. Enter the description and set the date.
4. On the first line, choose the “Loans” account and enter the loan amount in the Credit column (because the account is credit by nature).
5. Click “Add More” to add a new line.
6. Choose the account where the loan amount was deposited (for example, “Bank Account”) and enter the value in the Debit column.
7. Click “Save”.

Adding loan interest within the same entry

If the loan carries interest (for example 10%):

1. Add a new line and choose the “Loan Interest” or “Loan Expenses” account.
2. Enter the interest amount (for example 10% of the loan amount) in the Debit column.
3. Make sure total debits equal total credits before saving.

Additional information

At the line level you can choose location, project, or custom fields. At the entry level you can add attachments and link it to a project or custom fields once they are configured from the settings.