I took a loan from a debtor I invoice and he short pays invoices in repayment of the loan, how should I clear the outstanding balance/

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After having a loan from a debtor, he now short pays invoices for repayment of the loan. How do I clear the balances on the invoices?
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Lindsey Thompson

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Posted 3 years ago

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Rick Clement

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Hi Lindsey, You would have to do Journal entries. Create a Loan account from the Chart of Accounts. Then a journal would show the transaction as money out to the loan and money in to the debtor.