enter bounce back loan repayment in Xero

[CT1212]

I am trying to enter the bounceback loan repayment in xero, but I don't know how to do this. Part of the payment is paying back the loan and the other part is paying for the loan interest. I would really appreciate advice on this. Thank you very much.

 

[Scalloway]

I presume the loan received is on your Balance Sheet.

You need to split the payment in two when you enter it, The capital repayment will go to reduce the loan on the Balance Sheet and the interest portion is an expense.

Do you know how the repayments are split? You can calculate them with excel.

 

[CT1212]

I have received the loan account statement, so I know how the repayments are split.

The loan is not recorded on the balance sheet. I have just set up a separate business loan account under Xero. So how should I record the capital repayment and the interest repayment separately on the loan account statement? And how should I reconcile it against the one lumpsum payment ( including capital repayment and interest repayment) on the business current account? Thank you so much.

 

[Scalloway]

This video guives a comprehensive example of how to deal with loan repayments in Xero but please let me know if you need any more help.

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[CT1212]

Thank you so much, the video is very useful. How do I record the loan in the balance sheet? The video didn't explain how to record the loan in the balance sheet.

 

[Scalloway]

If you did not enter the loan when it was received I would do a Manual Journal Entry

Debit Owners Capital
Credit Bounce Back Loan

How to do a Journal Entry

Xero Central

central.xero.com

 

[NortonBishop]

If you've set up a "separate business loan account" in Xero then assuming that you set it up correctly as a liability it will automatically appear on the balance sheet.