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maxutsa52
Jan 16, 2008, 08:34 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, 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