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August 21, 2020
Question

Entering loan payments

  • August 21, 2020
  • 1 reply
  • 1 view

Hello! 

 

I had a loan with x company and was making payments as sales/revenue was coming in. As sales were slowed because of COVID, x company gave me a deal to pay in bulk a certain amount of the loan and the rest would be forgiven. I have made the payment and recorded it. How do I show that the rest of the loan has been forgiven?

 

Thanks for your time! 

1 reply

asha_kanta_sharma
October 24, 2021
You can create a new account under Other miscellaneous income and a journal entry to record the loan write off as "other income"

Thanks