Loan repayment into wrong bank accountpaid

instint
instint Member Posts: 13 Novice Member Novice Member
in Accounts Hosted

A personal loan was repaid into the business account instead of the personal account.What is the best way to reverse this transaction

Answers

  • Acctd4
    Acctd4 Accredited Partner Posts: 4,208 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert

    Hi @instint

    It will be a Make Deposit entry (into the business bank account) but where to allocate it, depends on the business structure & what has taken place.

    eg If the business is a sole trader entity, Make Deposit to Drawings. If it's a Company, post it to the Directors Loan account.

    If the payment has since been transferred to the relevant personal account, enter a Write Cheque, posting to the SAME account used in the deposit, to offset that entry ☺️

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  • instint
    instint Member Posts: 13 Novice Member Novice Member

    The incorrect deposit was from a personal loan outside of the business to another person not involved in the business.Sorry I should have clarified this originally

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