I rec'd money to start a business from a family member and make monthly payments for it. It's non-interest bearing and will take 5 years to repay. Does anyone know the proper accounting (journal entries) for the initial receipt of cash and monthly expense for repayment?

Initial Receipt.

DEBIT Cash Account $12,000
CREDIT Long Term Loan A/c $12,000

Being Long term loan for 5 years
Received in Cash from Family Member.

_____________________________
MONTHLY REPAYMENT.
This is NOT an Expense it is loan
Repayment in 60 instalments.


DEBIT Long Term Loan A/c $500
CREDIT Cash Account $500

Being repayment of one monthly instalment on Long Term Loan.