Changing a Beg Balance on a loan

[Heidilr1]

OK, another change I need to make:

Set up a loan in accounting setup originally, but did not put in a balance at the time.

How do I now set up a beginning balance for the loan? Know I will credit the liability (01-2620), but not sure what to debit (we didn't just receive the cash, so I can't debit the checking account). Thinking I need to debit an equity account, but not sure which one or if that is for sure the debit.

Thanks,

[NeilZ]

Did a search on loan, and came up with a few threads that could help you:

viewtopic.php?f=3&t=5572&p=19422
viewtopic.php?f=3&t=5265&p=18488

[Heidilr1]

As I think about the entries associated with this loan, had another question.

This is a no-interest loan from a church member. We pay this loan back only in the amt that money is given specifically to go to this loan. What would the entries be?

If my loan is set up as a liability, when money is given:

DEBIT - CHECKING ACCOUNT
CREDIT - ? (can't credit the liability - that would increase it. Would I credit an income account???)

When we pay the church member back,

Credit - LIABILITY
Debit - CHECKING ACCOUNT

[NeilZ]

We're in the middle of getting a mortgage/loan to replace our roof, so I've been doing some review of this, so I'm very interested in figureing this out too.

If my loan is set up as a liability, when money is given:

DEBIT - CHECKING ACCOUNT
CREDIT - ? (can't credit the liability - that would increase it. Would I credit an income account???)

I'm assuming that when you say money is given this is when the church gets the check from the person giving the loan.

You would credit the liability account for the amount of the loan. This would be a Long Term liability and you would need to show it as something the church HAS TO PAY. So do not set the account up with any beginning balance.

When we pay the church member back,

Credit - LIABILITY
Debit - CHECKING ACCOUNT

Here you would CREDIT the checking account (as you would when paying any bill) and Debit the liability account.

[Heidilr1]

Actually I'm talking about when church members give on a Sunday AM, and specify it's to pay this loan back.

When I set up the loan originally, I set up the remaining balance as a liability in PC.

Now, as people give money toward that loan, I am debiting the checking account, but what am I crediting? Not the liability, b/c that would increase it's balance. So then what do I credit?

When I then turn around and pay the loan back (I do this on a monthly basis), I debit the loan and credit the checking account.

Just stuck on what to credit when people give on a Sunday - ???

[NeilZ]

Actually I'm talking about when church members give on a Sunday AM, and specify it's to pay this loan back.

When I set up the loan originally, I set up the remaining balance as a liability in PC.

Now, as people give money toward that loan, I am debiting the checking account, but what am I crediting? Not the liability, b/c that would increase it's balance. So then what do I credit?

When I then turn around and pay the loan back (I do this on a monthly basis), I debit the loan and credit the checking account.

Just stuck on what to credit when people give on a Sunday - ???

Sounds like you need to add a temporarily restricted INCOME account just as you would for any income. Then when you give a check to pay the loan, you would release money from that account when you write the check. Credit the Checking account, and Debit the liability account, and then click the release restricted funds button.