How to enter a loan taken from bank

[Maf. King]

On Sun 9 December 12 01:44:08 kosalawa wrote:
> Hi,I am using GNU cash around one year. Please advice me how to enter
> transaction in GNU cash that I taken a loan from the bank.Thanks.
> 
> 
> 


Hi,

I am not an accountant, you might need to do something different for your 
local laws, but this is how I would do it in the UK.

Create a new liability account for your loan account. (Something like 
Liabilities:Loans Taken:Loan1)

Put a transaction in that new account, to send the money to your main bank 
account (assuming that is where the loan company paid the money)

Monthly repayments may be a split transaction from Bank Account to 
Liability:Loan and also to Expense:Interest, but it depends how your loan is 
set up.

HTH,
Maf.