expenses

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.

Sundry creditors refund account creation

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.

Journal entry for cancelled loan

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