Asked • 04/04/19

In double entry accounting, how do I enter a loan?

I have taken an accounting course several years ago, but I'm a little rusty. I'm using GnuCash, double entry accounting software. I have a loan from a friend, so no interest. I have paid about half the loan off and have spent all the money from the loan years ago. However, now I have decided to start using GnuCash to track my finances. How do I enter this loan? I'm confused as to which accounts to enter this in, since I have no assets from the loan, they have all been spent. As of now I only have the liability. So where does the other entry go?

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