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Profit and Loss statement

Angie_2000

When I run a profit and loss report, payments made for liabilities (lease/loan payments) do not appear.

These particular accounts are 2- accounts (long term liabilities).

Is there a way the loan repayments can be shown on the profit and loss?

We are an accrual based business.

Many thanks

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Accepted answers

gavin12345

Hi @Angie_2000

Suggest you discuss this with your accountant. Loan repayments don't normally appear on a P&L statement, only the interest component and this is usually posted by way of a general journal are end of month or end of year.

Whether P&L is on accrual or cash basis is not usually a factor.

Regards

Gavin

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Angie_2000

Thanks kindly for your reply Earl.

I create a general journal when a new loan is entered into.

When an amount is paid each month, I want that figure to appear on the P & L. Is this possible at all?

I am guessing the issue perhaps is because we are Accrual?

Thanks again for your assistance

Earl_HD

Hi @Angie_2000,

Thanks for your post. When generating a profit and loss report, payments made for liabilities such as lease or loan payments may not be automatically included. These types of accounts are typically classified as long-term liabilities. I would recommend on visiting this help articles for more information: Loans and repayments and How to prepare a Profit and Loss

Feel free to post again, we're happy to help!

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Regards,
Earl