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-   -   Journal entry when obtaining a loan (https://www.askmehelpdesk.com/showthread.php?t=173286)

  • Jan 16, 2008, 08:34 PM
    maxutsa52
    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
  • Jan 17, 2008, 12:22 PM
    pready
    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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