Vehicle purchase + Loan + Interest
JNL
Member Posts: 4
Hi all
Newbie here with little account knowledge. I wanted to record a purchase of new vehicle and wanted to know how should I record this hypothetical scenario below
Purchase of vehicle $100,000
Bank Loan - $50,000
Bank Interest - $10,000
Loan term - 60 months
Repayment - $1000 monthly
Based on this post, I think i worked out
- Create an asset in Accounting > Chart of Accounts > Assets > Property, Plant, Equipment
- Create a new loan account under Accounting > Chart of Accounts > Liabilities & Credit Cards > Loan and Line of Credit called "Vehicle Loan"
How do we account for Interests mentioned above? what do I do for monthly bank loan deduction of $1000 (principal and interest).
Thanks!
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