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    whatsbruin's Avatar
    whatsbruin Posts: 1, Reputation: 1
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    #1

    Sep 24, 2010, 06:59 PM
    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?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Sep 25, 2010, 10:48 AM

    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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