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 category
Allocate the capital amount and categorise to Business loan, before clicking the Add category button
Next click Choose a category to allocate and categorise the interest element.
Now allocate the interest amount and categorise to Interest paid, before clicking the Add category button
After this, you can mark the transaction as reviewed. The capital element will reduce the loan balance outstanding. And the interest element with go the P&L as an expense.
