Journal entry for purchase and sale of property for sale

ZONE12 · #1 Apr 19, 2008, 03:07 PM

I purchase an apartment for $ 1.7m and paid first instalmment of 250k ,Before the second installment i sell the apartment at the value of 1.9m .Please tell me how to record the journal entry .

MaggieMouse · Apr 21, 2008, 03:48 PM

Here is the simple version of the transaction, not considering any tax, transaction cost or depreciation:

Bought-Dr. House 1.7M Cr. Payable 1.7M
Installment-Dr. Payable .25M Cr. Cash .25M
Sold-Dr. Cash 1.9M Cr. House 1.7M
Payoff the loan-Dr. Payable 1.45M Cr. Cash 1.45M



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