How do I input and pay back a bank loan, mortgage or lender?

Step 1: Input a bank loan

1. Open the General Journal window.
2. Debit the bank account and Credit bank loan liability account.
3. Click Post.

Step 2: Pay back the bank loan

Method 1: To print a cheque

1. Open the Payment Journal by going to:
   • Classic View - Payables > Payments
   • Enhanced View - Payments
2. Select Make Other Payment.
   
3. Select a vendor or create a one-time vendor for the loan issuer.
4. Select the bank loan liability in Acct column.
5. Input the loan amount under Amount column.
6. Select the interest expense account in the next line of the Acct column if necessary.
7. Input the interest amount under the Amount column.
8. Click Post or Process.

Method 2: Using the General Journal

Note: You will not be able to print cheques in the General Journal.

1. Open General Journal window.
2. Credit the bank account then debit bank loan liability account.
3. Debit the interest expense account if any.
4. Check the date and click Post or Process.

How to setup a credit line bank account?