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Créé le 4 fév. 2019

Disqus Agexpert Accounting Questions Archive

I have a loan set up owing a machinery company. The company automatically withdrew the payments and now at the end of the loan there is a small balance of a few dollars owing, which they have decided to write off or forgive. I would like to clear that loan amount off my books and wonder what is the best way to record that. Thank you.

  • RÉPONSE
    10 fév. 2025

    Hello Caitlin, you could record a transaction with a total of 0 and the first line type an L- (loan payment) for the amount remaining. Add a second line to equity and add a new account called forgiven loan balance, or something like that. This will clear out your loan amount. Be sure to mention this transaction to your accountant.

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