How do I record a mortgage in QuickBooks?

 At the very least you should have four accounts in your chart of accounts:

Real Estate (asset)

Mortgage (liability)

Interest (expense)

Cash: (asset)

Let’s say that your mortgage is $100,000. Recording it requires a debit to Real Estate and an equal credit to Mortgage.

Let’s say that your payment on that mortgage is $1,500 per month. Some of this $1,500 is interest and that varies with each payment. For these purposes, let’s say that the interest in this payment is $500. Recording it requires two debits ($500 to interest and $1,000 to mortgage) and one credit of $1,500 to cash.

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