Need to set up a loan account. How do I do that? 2. Also to payment cum interest on loan split?

I am happy to assist you in setting up a loan account in QuickBooks Online, Ebiz. Rest assured, you're not alone, and I'm here to help you navigate this in QuickBooks Online.

Creating a loan account in QuickBooks Online allows for improved tracking of your borrowing and lending activities, which helps you manage expenses and cash flow more efficiently. 

Here's how to establish your liability account to monitor the loan. I'll also demonstrate a method for tracking loan amounts with interest.

First, set up a liability account in your Chart of Accounts. Follow the steps below:

1. Go to Transaction and press the Bank transaction.
2. Choose the Chart of Accounts section.
3. Select New to create a new account.
4. From the Account Type dropdown, choose Non-current Liabilities.
5. Note: If you plan to pay off the loan by the end of the current financial year, select Current liabilities instead.
6. Select the Notes Payable (or Loan Payable) from the Detail Type dropdown.
7. Leave the Opening Balance at $ 0 and select Save.

Next, you can proceed with recording payment with interest in QuickBooks Online.

Here's how:

1. Select + New.
2. Select Cheque.
3. Add a cheque number. If you use direct withdrawal or an EFT, enter Debit or EFT in the Cheque no. field.
4. Choose the expense account for the interest from the Category dropdown. Then, enter the interest amount.
5. Press the Save and Close.

For more guidelines, refer to this page on how to enter for loans: Set up a loan in QuickBooks Online.

Additionally, if you need to process debt amortization with a cheque, please visit this article: Does QuickBooks Online have an amortization schedule?

That's it, Ebiz. You are now ready to track your loans with interest in QBO. Keep your loan records accurate and organized to maintain transparency and avoid financial issues.