I you have a nominal account for loans (2300’s) which had a starting balance but there wasn’t a bank account for it.
I have been posting the interest to the loan account each month (CR 2300’s) and overhead (DR 7000’s).
A supplier gave a refund and it was paid into the loan account, it cleared the balance of the loan and the remainder was transferred to the current account. I posted the refund (transfer) to the direct expense nominal (6000’s).
I now need to journal and balance the loan account. It currently sits at CR 674.50 and the overhead interest nominal shows as DR £43.80.
I hope this all makes sense!
Anyway, what journals should I post to bring the loan account to £0.00