Business Loan HELP!

[Paul Schwartz]

--- Kathy <kathyo at centurytel.net> wrote:

> Hi,
> We just got a loan for our small business.   I set
> it up as a liability 
> account, with a transfer of funds to my checking
> account so I can write 
> checks on the account balance.   How do I properly
> enter the information in 
> the  liability account so that these expenses will
> show up in the proper 
> categories for tax purposes.  I tried, for example,
> $800
>  for building repairs,  but it doesn't show up at
> all in the tax report.  When 
> I deduct it from the checking account it will enter
> it in the proper places 
> for tax purposes, but i can't seem to figure out how
> to keep track of it in 
> liabilities.
> Please help I am no accounting genius by any means! 
> What am I doing wrong and 
> what to I need to do to keep track of all of this
> right.
> Thanks & Best Regards,
> Kathy
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> gnucash-user at gnucash.org
>
https://lists.gnucash.org/mailman/listinfo/gnucash-user
> 
That's the proper way to normally treat a loan: create
a liability for it and put the money in your checking
account [or similar].  Then, when you spend money on
something, you credit your checking account and debit
the appropriate expense account.  If you pay off
principal on the loan, then you credit your checking
account and debit the loan liability [it is not an
expense].

HTH

Paul Schwartz

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