How to remove an asset recorded under liabilities

I have an asset recorded on my balance sheet and I can't work out how to remove it... 

My balance sheet has the asset recorded, then the loan is recorded as a liability in the correct sections on the balance sheet. 

I've just had a look tonight and for some reason the repayments are coming up as an additional asset on the balance sheet (they display as below)

''2-2135 Loan- Other (2,715.52) 0.00 (2,715.52)''  

The figures in brackets are in the ''Actual'' and ''variance'' columns of the balance sheet. 

From what i can work out, the loan repayments aren't actually reducing the loan amount recorded but are being recorded as an asset each time. 

I have tried to go to chart of accounts under liabilities and delete the category but get an error (the below message). I can't figure out what to do. How do i fix it?