In what category would I put a loan I took to pay an expense

How do I categorize a loan payment in Quickbooks?

Recording loan payments

1. Go to the Gear icon and choose Chart of Accounts.
2. Click on New.
3. Select Long Term Liabilities from the Account Type drop-down arrow. …
4. From the Detail Type drop-down arrow, select Notes Payable.
5. Choose when you want to start tracking your finances from the ▼ drop-down arrow.

How do I categorize a loan in Quickbooks?

Here’s how.

1. Go to Settings ⚙, then select Chart of Accounts.
2. Select New to create a new account.
3. From the Account Type ▼ dropdown, select Long Term Liabilities. …
4. From the Detail Type ▼ dropdown ▼ dropdown, select Notes Payable.
5. Give the account a relevant name, like “Loan for a car” or “Covid-19 relief loan.”

What is the journal entry for a loan?

Journal Entry for Loan Payment (Principal & Interest)

Loan A/C	Debit	Debit the decrease in liability
Interest on Loan A/C	Debit	Debit the increase in expense
To Bank A/C	Credit	Credit the decrease in Asset

How do you record a bank loan in accounting?

How Do You Record a Loan Receivable in Accounting?

1. Debit Account. The $15,000 is debited under the header “Loans”. This means the amount is deducted from the bank’s cash to pay the loan amount out to you.
2. Credit Account. The amount is listed here under this liability account, showing that the amount is to be paid back.