How do I record a waived loan?
A waived loan is an indirect income to the business. So a Sundry Creditors Refund account has to be created followed by a journal entry.
- Go to the Accountant tab on the home page of Zoho Books.
- Go to the Chart of Accounts tab and click on the + New Account button.
- Enter a suitable account name (say Sundry Creditors Refund). Select Other Income as the account type from the Account Type drop down.
- Write a short description if you so desire and click Save.
Now, you need to create a journal entry.
- Go to the Accountant tab on the home page of Zoho Books again.
- Go to the Manual Journals tab and click on the + New Journal button.
- Choose your loan account (Loans) as the account type for the Debits and make sure to select the Sundry Creditors Refund account you created for the Credits.
- Add a note and click Save.