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    gulya91's Avatar
    gulya91 Posts: 1, Reputation: 1
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    #1

    Dec 25, 2011, 12:51 AM
    Bank loan payable in journal entry?
    Bank loan in accounting transactions?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Dec 26, 2011, 04:34 AM
    When you receive the loan:
    Debit Cash for the amount received
    Credit Notes Payable for the amount of loan

    To acrue the interest:
    Debit Interest Expense for the amount of interest acrued
    Credit Interest Payable for the amount acrued

    To record the payment:
    Debit Notes Payable for the amount of principal paid
    Debit Interest Payable (if interest was acrued) or Interest Expense for the amount of interest
    Credit Cash for the total amount paid.
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