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-   -   Line Of Credit (https://www.askmehelpdesk.com/showthread.php?t=344163)

  • Apr 21, 2009, 06:06 AM
    auchterarder
    Line Of Credit
    I want to write a check against my business line of credit and deposit it into my business checking (operating) account.

    I use Quick Books. I do not want to record this transaction as income or sales, so what is the correct entry? I know I have to debit "cash", my business checking account, but what account do I credit?
  • Apr 21, 2009, 03:58 PM
    morgaine300

    Getting money from a line of credit is a loan and you owe it back to the bank. So it's a liability. If it were me, I'd want to create a separate liability account just for the line of credit to keep it separated.

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