In this example, a loan account has been created as a new loan account with an opening debt of £10,000 (created by transferring money from the loan account to the business account).


This guide will explain how to repay the loan account and the interest on each payment.


Step 1.


Navigate to Settings > Accounting > Account Codes.


Account codes

Step 2.


Make sure that your loan account has the check box beside show in purchases ticked and hit the Update button at the bottom.



Step 3.


Navigate to Money > Bank accounts.


Bank accounts


Step 4.


Click on the Money out link for the appropriate bank account.



Step 5.


Fill in the details of the form adding the full loan payment (including the interest) in the amount.



Step 6.


Select the loan account in the To box. Explain the interest charge by changing the figure in the Amount box.  Hit the Add new transaction button to partially explain this payment.



Step 7.


Explain the remainder To the loan account contact and select the Loan Account in the Account drop down box . Hit the Add new transaction button to explain the second part of the payment.


loanoutstanding


Step 8.


The payment will list the two explained parts from steps 6 & 7. Hit the Add transactions button to complete.


addtrnsactionloan