Loan set up

[ldavis281]

We received a loan for a gym roof - we received 3 checks from this loan at different times over 2 months. How do I set this up?
Would it be o.k. to just set it up as one deposit entry of the 3 checks? Or should I do 3 separate entries as below?

This is what I think??
to set up loan:
CR - Income Acct - 01-4035 Other General Income
DB - Asset - 01-1110 Op Checking
CR - Liability AL-2120 Loan Gym Roof
DB - Fund Balance AL-3996 Fixed Assets/Liab.

Pay Loan Payments as:
01-1110 Op Checking Credit total payment
01-5271 Loan Principal Debit Principal
01-5270 Loan Interest Debit Interest
AL 2120 Loan Gym Roof Debit Principal
AL 3996 Fixd Asset/Liab. Credit Principal

Pay expenses from: General Fund account: Building - Major Repairs

Does this look correct or would there be a better way?
Thank you for your help!

[NeilZ]

We received a loan for a gym roof - we received 3 checks from this loan at different times over 2 months. How do I set this up?
Would it be o.k. to just set it up as one deposit entry of the 3 checks? Or should I do 3 separate entries as below?

This is what I think??
to set up loan:
CR - Income Acct - 01-4035 Other General Income
DB - Asset - 01-1110 Op Checking
CR - Liability AL-2120 Loan Gym Roof
DB - Fund Balance AL-3996 Fixed Assets/Liab.

Pay Loan Payments as:
01-1110 Op Checking Credit total payment
01-5271 Loan Principal Debit Principal
01-5270 Loan Interest Debit Interest
AL 2120 Loan Gym Roof Debit Principal
AL 3996 Fixd Asset/Liab. Credit Principal

Pay expenses from: General Fund account: Building - Major Repairs

Does this look correct or would there be a better way?
Thank you for your help!

You need to enter each deposit as it would appear on the Bank Statement. Three separate deposits. Also ...you're trying to show the liability in a separate Accounting Fund. You need to keep it all within one Accounting Fund or else you'll be spending a lot of time using transfer accounts.

If the AL accounting fund uses the same checking account (IE: Al-1110-000) as the main operating Accounting Fund, just do everything in that one Accounting Fund. That reduces your deposit to just a DB of the checking, and a CR to AL income. Then set up those expense accounts in that AL fund, and pay from that AL account.

[ldavis281]

THe bookkeeper set up our Assets and Liabilities account to just track assets and liabilities. We don't pay from there. It looks like we just do double entry to set up the account. We would deposit into General Account and pay from general account. But when we then have to double post so the balance can be tracked in Liabilities. I just wanted to make sure my debits and credits were correct to do that. It is a little confusing to me.

[NeilZ]

THe bookkeeper set up our Assets and Liabilities account to just track assets and liabilities. We don't pay from there. It looks like we just do double entry to set up the account. We would deposit into General Account and pay from general account. But when we then have to double post so the balance can be tracked in Liabilities. I just wanted to make sure my debits and credits were correct to do that. It is a little confusing to me.

Your bookkeeper is using that account wrong ... and causing you more work.