Loan Payable is an account payable that you register the amount that you have to pay to someone that lends you, plus interest revenue generated periodically by outstanding balances.

Take a look at this example: you borrowed $100 from John with a 10% of interest rate.

How to assign loan payment on Bkper?

1) Create the liability account to track the outstanding balance, plus the outgoing account to track the interest revenue:

2) Record the value of the loan:

3) Record the interests periodically (usually monthly):

To calculate and record the interest periodically, you can use our Google Sheets Add-on.