[karukjh]

My company bought a property and secured a loan from bank. Assume the property amount is $250K and the loan amount is $200K. The balance of $50K paid by cash. Upon the bank release the loan amount on partially basis, the bank will charge a certain amount to my company as progressive payment to them. So how should I start up with the accounting entries :-
(for your information the property is under construction)

a) Setting up the loan account
b) How do I set up the account for the interest. Shall I Dr - Interest Payable and at the end of year I Cr - Interest Payable & Dr - Interest Expense account
c) what will the entry for progressive payment the company paid to the bank upon release of loan amount

TQ