I have purchased a house and sold it on a land contract. I get paid monthy and some of the amount is for paying the interest and some of the amount is for paying the principle. Where do I enter that into the books? What account does the principle go and iinto what account does the interest go?
You should set up a notes receivable for the principal amount of the land contract. When you receive payments you would go to banking>make deposit and enter the notes receivable account and the principal payment and on the next line enter interest income and the amount. The amount received on the principal will reduce the balance in your notes receivable account.
Contact any ProAdvisor directly by clicking on their links if you need detailed assistance or continue asking questions in the forum.
Please mark the post Solved (if this helped), and click the "thumbs up", (if this resolves your issue), PLEASE post additional information.
Julia
Specializing QuickBooks accounting through financial statements! www.dbzequalcdz.com Advanced Certified QuickBooks ProAdvisor
