I was just wondering where I would put a bank loan in the accounts? And for the monthly repayments too, where should I put that? The same thing for a grant given by the government. Thanks in advance!
The loan received should be entered under Liabilities (you'll see a generic heading that you could use OR you can create your own to be nested under Liabilities). The monthly repayments should likewise be posted to this account thus showing a reducing loan balance. Interest charges can be entered by journal, crediting the loan account and debiting Interest expense under Expenses with the value of each (monthly?) charge.
IF however you do not receive loan statements and have in fact taken out a fixed term loan where the total interest charges over the term have already been preset in the agreement you can either simply work out the monthly charge by dividing the total interest charge for the loan by the number of months in the full term of the loan, OR, alternatively you can use the sum of digits method which loads more of the interest towards the earlier repayments (which reflects of course how the interest is calculated by the lender).
Thank you so much for that information but I'm still struggling with how i enter and record that information onto my wave accounts online how do i go about doing this ? . Any help will be appreciated. Thanks again.
My explanation was intended to advise you how to enter it so I'm a little puzzled by your next question. What is it specifically that you are struggling with?
You simply need to match off your loan payments derived from your bank download with your loan payment receipts from your bank loan download, in much the same way as you would with bankings. As you have already downloaded the loan statements the interest is appearing as an entry in it's own right on the liability account so you would just need to categorise them as an interest expense. There's no need to do any journals, I only suggested that to you on the assumption you hadn't linked your loan account to Wave.