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babes08 · Mar 14, 2008, 10:57 AM

How to post entry when I acquired car loan with 4% interest payable in 3 years?

ms180sx · Mar 14, 2008, 11:07 AM

I would debit you cash, then credit you equiptment or asset accts.
You can also use the depreciaition on the car as a write off

U might need to do something with your accts payable acct, because it's a loan, not a lump sum payment, and then your asset acct.

morgaine300 · Mar 18, 2008, 12:32 AM

If you got cash for the loan, and then later purchased the car with the cash, you would need two entries. The first would dr the cash and cr the notes payable. The second would dr the car and cr the cash.

If you got the car directly for the loan, you dr the car and cr the notes payable.

The interest is irrelevant at the time you get the loan because it's not due and payable on the day you get it. That is something you'll record when it's paid, or accrued at the end of the year if not yet paid.