How do I record a waived loan?

A waived loan is an indirect income to the business. Create a new account and add a journal entry against that account to record the waived loan.

To create an account:

• Go to the Accountant module on the left sidebar and select Chart of Accounts.

• Click + New Account in the top right side of the page.

• Select Other Income as the Account Type and enter a suitable account name.

• Add the necessary details and click Save.

  

An account will be created.

Now, record a journal entry for the waived off loan:

• Go to Accountant module and click Manual Journals.
• Click the + New Journal in the top right side of the page.
• Check the details and enter a short note for the journal entry.
• Choose your loan account as the Debit account and make sure to select the account you created as the Credit account.
• Click Save and Publish to record the waived loan.