How do I pay a loan from an owner that is currently in an ‘other current liabilities’ account?

If you have found the information on my blog to be useful, please consider donating a few bucks today; click Donate icon button. Thank you!





Question:

I asked a question a while back about how to record bills that I had paid with my personal card that the company needed to pay me back for.

http://community.intuit.com/posts/how-do-i-part-pay-a-bill-using-my-personal-funds-and-the-rest-using-company-funds

In short, I set up a Loans from Owner clearing bank account, and paid the invoice through that, then did a journal entry to move those debts into a “Loans from Owner” current liability account.

I’d now like to cut myself a check from the main company bank account to pay the debt, but i’m not sure how to raise a check against the company bank account that pays down the balance of the current liability – any suggestions would be gratefully received!

Answer:

Step # 1

GO to Lists > Chart of Accounts

Locate Loans from Owner under liability account

Check and find out Balance Total Amount > so that’s the amount shown as Debt to “Loans from Owner” account

Step # 2

GO to Banking > Write Checks

Start writing check

Note: Account under Expense Tab > Select Loans from Owner account

 

If you have found the information on my blog to be useful, please consider donating a few bucks today; click Donate icon button. Thank you!