I have a long term liability from the bank but received the cash in the checking account, how do i post this in QB.
I will be paying principal and interest on this loan monthly
When you record the receiving of the money: post it as a deposit into the bank. Under "From Account" use a long term liability account (you might need to set up a new one, call it Note Payable X Bank or similar).
At the time of paying the monthly payment you will need to separate the amount into principal and interest, just as you mentioned.
