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    maxutsa52's Avatar
    maxutsa52 Posts: 3, Reputation: 1
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    #1

    Jan 16, 2008, 08:34 PM
    Journal entry when obtaining a loan
    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's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Jan 17, 2008, 12:22 PM
    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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