How to enter loan and repayments

Hi there, Stevehere2801.

We can use a journal entry to record a business expense paid with personal funds. You can follow these steps:

1. Go to the Company menu and select Make General Journal Entries.
2. Select the appropriate expense account in the first Account column.
3. In the Debit column, type in the amount of the transaction. You can select the customer from the Name drop-down.
4. Choose the other current liability in the column.
5. Tap Save and Close.

After completing the journal entry, you’ll need to create a check for reimbursement. Here's how:

1. From the Banking menu, click Write Checks.
2. Select the business bank account in the Bank Account field.
3. Enter the necessary details. Go to the Expenses tab and enter the other current liability in the ACCOUNT column.
4. Put the amount you want to reimburse.
5. Tap Save & Close.

Since the $20,000 transaction came from your personal account, you will need to transfer that money to the company account.

Lastly, if the two items cost $20,000, make sure to reduce your inventory and record the repayment in the journal entry.

For more information, feel free to check out this article: Manually track loans in QuickBooks Desktop.

Please let us know if you need further assistance with recording your transactions in QuickBooks.

@Stevehere2801 

To confirm, you paid $50K for the inventory items - $30K of that came from your personal funds and $20K from the business, correct?  On your balance sheet, you currently show a $ 30,000 loan payable liability, and the $ 50,000 in inventory items are being shown as an asset in your inventory, correct?  

If that's correct, and all you need to do is record the 2 inventory items that your daughter purchased, it's a simple inventory quantity adjustment that reduces both the inventory and the loan liability amount by $20K because the business repaid the loan with the 2 inventory items you took out personally for your daughter.

Go to Vendors > Inventory Activities > Adjust Quantity/Value on Hand.  Under 'Adjustment Account', select the loan payable liability account.  Under 'Item', select the item your daughter purchased and change the quantity from 5 to 3.  That's it.  The loan payable liability has been reduced to $10K, and the inventory has been reduced to a quantity of 3 items.