I own a S Corp which consists of 3 restaurants. I sold one and paid the bank off for the other 2 with part of the money I received from the sale. How do I enter this in my chart of accounts.
Wow. This is a complicated question, and I'd need more information to answer it correctly.
You have several things going on here. You're selling a property and business. You're paying off loans. There's depreciation and book value to consider. There's loan payoff amounts and interest to consider.
There is no 'pat' answer to this question.
I can say in general terms, when you sell a business, you normally receive cash and pay off a loan, and also dispose of assets and a loan.
For example, you sell Joe's Restaurant for $40,000. And there's no loan on it.
You receive cash of $40,000.
You record the sale of assets - building, equipment, etc. - by crediting your asset accounts, debiting your Accumlated Depreciation accounts, (asset value less accumulated depreciation is called book value) and posting a Gain or a Loss on the Sale of said asset.
If there's a loan on that asset it gets trickier. There's more to consider, bank payoff amounts, interest paid, etc.
I think this topic is a good candidate for a new page on this site.
You didn't leave a name when you posted this question, but I hope this helps you a little.
There are tax consequences to exchanges of property, so when you have your taxes done, please have a knowledgeable CPA or tax consultant take a look at this for you.
If I can be of further assistance, let me know.
visit my page on loans for some more info on accounting for loans, too.