How to write up and protect money making transactions cashflowdepot books

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How to record journal entries for PPP loan?

How you record the entry depends on whether you create a separate PPP loan account or add the PPP loan funds directly into your regular bank account. Again, creating a separate bank account for your PPP loan is a good idea for simple tracking. If you are able to create a separate bank account for your PPP loan, you’ll create two journal entries.

When to use PPP loan funds for expenses?

When you use PPP loan funds to cover expenses—eligible for forgiveness or not—you must record it in a journal entry. Again, these expenses are eligible for loan forgiveness: How you record the entry depends on whether you create a separate PPP loan account or add the PPP loan funds directly into your regular bank account.

Do you touch your PPP loan payable account?

Do not touch your PPP Loan Payable (liability account) unless your lender tells you that your loan is forgiven or at the point repayment is required. If your loan is partially or fully forgiven, you will create a journal entry writing off the forgivable portion (shown below).

Last Update: Oct 2021


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