Opening Balance for a Liability

Question

My brain has turned to mush! I have a loan that we have on an excavator..I need to but in the amount of the loan and apply payments and I can't for the life of me get it to work. Brain fog at its best and the more I try the more frustrated I get.

Agate · Answer

Hi JennK2018: 
 If you record the loan without the interest then DR excavator capital cost, DR HST/GST and CR loan using a journal entry. Payments would be to the who ever loaned you the money; so DR loan, DR loan interest and of course CR bank. This would be the most simple way to record the transactions. If you need a more complex way of recording the transactions then approach your accountant or get in touch with me directly off forum. 
 Hope this helps!

Sage 50 Canada

Opening Balance for a Liability

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