How do you record a small loan given to someone and also record the payment when received?
Example:
I give someone a $2,000.00 loan and they pay me back without interest. How would I record this so that the payment does not show like I am receiving $2,000.00 in deposit income?
Also, if I loan someone $12,000.00 and they pay me back $12,500.00. How would I record this transaction?
Both of these scenarios are a straight loan I did not make invoices because there was no work done. So I figured I did not have to make an invoice.
Can someone please help me as this is so confusing. Thank you
