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-   -   How to record Mortgage payment in General Ledger? (https://www.askmehelpdesk.com/showthread.php?t=510623)

  • Sep 24, 2010, 06:59 PM
    whatsbruin
    How to record Mortgage payment in General Ledger?
    On December 1st, you make a mortgage payment of $1600. The interest on the mortgage is $200. The principal is $1400. How would you record this in the general ledger and balance sheet?
  • Sep 25, 2010, 10:48 AM
    pready

    Debit Insurance Expense for the amount of insurance
    Debit Mortgage Payable for the amount of principal
    Credit Cash for the total amount.

    Insurance Expense balance will be an increase
    Mortgage Payable balance will decrease
    Cash balance will decrease

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