Hull Girl
Level 1
‎March 04, 2024 11:45 AM

How to record deferred interest

I have an EIDL loan that we are not paying on the principal or interest yet. 

I have the loan principal set up as a long term liability.

 

How do I record the interest accrual? I have a short term liability account set up - I assume I credit (increase) that account every month by the deferred interet, but what account do I debit?

 

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Candice C
QuickBooks Team
QuickBooks Team
‎March 04, 2024 01:02 PM

Account management

Hey there, @Hull Girl. 

 

It's great to see you back in the Community! 

 

I recommend reviewing this article in the last section (Step 3) about recording interest. 

 

If you're still having trouble after looking over the information, then I suggest consulting with your accountant to be sure what would be best for you business. 

 

I hope this helps. I'm only a comment away if you need me again. Have a wonderful day! 

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Hull Girl
Level 1
‎March 04, 2024 01:11 PM

Account management

Yeah, that doesn't cover deferred interest, only loan payments. We're not making any payments right now, I just need to know which accounts to debit/credit for the accruing interest. 

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Rainflurry
Level 15
‎March 05, 2024 06:27 AM

Account management

@Hull Girl 

 

Debit Interest Expense, credit EIDL Accrued Interest.  

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