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
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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
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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