Once you start paying back your bounce loan, you'll need to split the transaction between capital and interest elements.
The capital element of the transaction should be posted to the business loan category (and reduce the outstanding loan).
The interest element of the transaction should be posted to the interest paid category.
Note: You will be able to find the split of this on your statement from your loan provider.
To split the transaction in Ember follow these steps:
Find the transaction for the repayment of the loan in the transactions tab.
Click Split Transaction and then change the category to business loan. Add the description for capital. Add the value of the capital repayment (from the loan statement) and then confirm this line.
Repeat this process to add a line for the interest element.
After this, you can approve the transaction. The capital element will reduce the loan balance outstanding. And the interest element with go the P&L as an expense.
