karukjh
Jun 24, 2014, 07:26 PM
My company bought a property and secured a loan from bank. Assume the property amount is $250K and the loan amount is $200K. The balance of $50K paid by cash. Upon the bank release the loan amount on partially basis, the bank will charge a certain amount to my company as progressive payment to them. So how should I start up with the accounting entries :-
(for your information the property is under construction)
a) Setting up the loan account
b) How do I set up the account for the interest. Shall I Dr - Interest Payable and at the end of year I Cr - Interest Payable & Dr - Interest Expense account
c) what will the entry for progressive payment the company paid to the bank upon release of loan amount
TQ
(for your information the property is under construction)
a) Setting up the loan account
b) How do I set up the account for the interest. Shall I Dr - Interest Payable and at the end of year I Cr - Interest Payable & Dr - Interest Expense account
c) what will the entry for progressive payment the company paid to the bank upon release of loan amount
TQ