journal entry when obtaining a loan

maxutsa52 · #1 Jan 16, 2008, 06:34 PM

How do you write the journal entry for the obtaining of a loan?

I know I debit Notes payable but I can't remember what to credit

pready · Jan 17, 2008, 10:22 AM

If you received Cash then:

Debit Cash for the amount Received
Credit Notes Payable for the Amount due

If you received another Asset then:

Debit the Asset acount such as Vehicle, Equipment, Land etc.. for the Amount of the loan
Credit Notes Payable for the amount due



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