How to write of the loan forgiveness part of the $60,000 CEBA loan. So the journal entry to write off the the $20,000. I'm assuming its income, taxable etc..?

Hello Kevin,

You are right. It is zero rated income.

The entry would be as follows:

DR CEBA Loan 20,000 (this would be a liability account on the balance sheet . You should see it as 60,000 before making the entry)

 CR CEBA Income 20,000 (this would be an income account on the P&L)

Thanks

Prachi

Hi kevin145.

Making sure your journal entries are correct is the key to keeping your accounts balanced. I'd be happy to point you in the right direction for this.

QuickBooks Online makes creating journal entries easy so you can get back to other parts of your business. When making a journal entry that you're not use to I recommend reaching out to an accountant as they are trained in what needs to be applied to it and what accounts to credit and debit. If you don't have an accountant no worries, we can help. You can follow these steps to find one in your area that can help. Go to My Accountant>Find a pro to help.

If you have any questions feel free to reach out and we'd be happy to help.