First Time for Loan

[riverdale]

How do we set up and track a bank loan. Thanks for any help.

Curt

[NeilZ]

I did a search on Bank Loan and found a few threads that may help you:

http://www.powerchurch.com/forum/viewto ... 29&start=0
http://www.powerchurch.com/forum/viewto ... f=3&t=3380
http://www.powerchurch.com/forum/viewto ... f=3&t=3088

Hope these help.

[wms7328]

Setting up a loan is very easy. You set up a liability account for the loan just like you would set up as asset account for bank accounts. In the case of the liability loan account, you post principle payments to this account and it will track the loan balance. You will have to separate out the principle and interest part of the payment. The principle payment would reduce the loan balance, the interest would be an expense out of whatever account you are making the loan payment. Hope this helps.