USA Simple Loan categories?


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Which categories am I supposed to use for short loans?

EX:
John Doe gives the company $1000. In two weeks, we are going to pay him back this $1000. No interest or anything like that. Simple in-and-out.

Is it: $1000 into "other current liability" (I labeled it as "simple loans")

Then when paying it out via check, I pay "John Doe" $1000, but the category in the check...is it "other current liability" again? Or is labeled as an "expense"?
 
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smallbushelp

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You put the loan on the books as a liability because it's not income, right? So when you pay it back, why would you categorize it as an expense? When paying back the loan, you relieve (or close) the liability account.
 

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