The company I am working for has just received a loan and I have posted the relevant figures on QuickBooks.
My question concerns invoices that have been paid from the loan before we received the money so as such only received the balance after the invoices were paid. How does these get posted and paid?
Let's say the loan was for £10k and £5k of invoices had been paid out of that money, then the journals should be as follows :
Dr Bank £10,000
Cr Loan £10,000
Cr Bank £5,000
Dr Trade Creditors / Purchases £5,000 (depends on how you're dealing with the payments, ie as bank payments or through the creditors control account).
So essentially the total amount of the loan is posted as being received into the bank (even though it wasn't), and the relevant payments offset against this amount to get you back to the actual amount you received. I hope that makes sense?!?!
