Margriet
5 years agoExperienced User
How do I make journal entry to record interest on bank loan
How do I make journal entry to record interest on bank loan? The monthly payments are recorded in "banking" but that does not reconcile the liability account that I have created for the loan.
- 5 years ago
Apologies - posted b4 I was ready.
Loan account Debit $800
Interest Expense Debit $200
Cheque Accounrt Credit $1,000
With a table mortgate the split between repayment on the loan account and interest will change with each payment , so these need editing every payment.
I use recurring journals for splitting things such as phone/internet between business/personal as well as receipts where there multiple splits and an invoce was no previously issued.