A waived loan is an indirect income to the business. Create a new account and add a journal entry against that account to record the waived loan.
To create an account:
Go to the Accountant module on the left sidebar and select Chart of Accounts.
Click + New Account in the top right side of the page.
Select Other Income as the Account Type and enter a suitable account name.
Add the necessary details and click Save.
An account will be created.
Now, record a journal entry for the waived off loan:
Books
Online accounting software
for small businesses.