Closing existing loan & creating new refinanced loan

[Nicabocka]

Hi,

A business recently refinanced a loan where the new loan involved funds being paid to previous financer and funds paid directly to business bank account.

How do I allocate the new loan, close off the old loan and receive funds to the business account?

New loan info:  Loan Amount $24,307.00 consisting of $15,000 paid to our business bank account (bank feed trasaction), $8328.43 paid to previous financer, $978.57 Loan Fees & costs.

Help would be greatly appreciated.

Thank you

Nic

[Steven_M]

Hi @Nicabocka 

I would recommend speaking to your accounting advisor in regard to the best way to record that transaction for your reporting requirements. I would ensure you can get the accounts, amounts, and tax codes involved in that transaction.

From an MYOB Business point of view, you would typically record those larger style transactions through the Accounting>>Create journal entry window. Our Help Article: General journals has more information on recording these transactions.