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    auchterarder's Avatar
    auchterarder Posts: 1, Reputation: 1
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    #1

    Apr 21, 2009, 06:06 AM
    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?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Apr 21, 2009, 03:58 PM

    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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