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Forums › ACCA Forums › ACCA FA Financial Accounting Forums › Double entry for purchase building
What is the double entry of purchase shop house by using bank loan?
And the double entry of payment of the bank loan.
Please help me. Thanks
In future, if you want me to answer then you must ask in the Ask the Tutor Forum – this forum is for students to help each other.
To purchase a shop by using a bank loan is two entries.
First you enter the loan:
Dr Cash; Cr Loan account
Then you buy the shop:
Dr Shop; Cr Cash
To repay the loan, the entry is:
Dr Loan; Cr Cash
(I do suggest that you watch the free lectures on here – they go through everything you need to be able to pass F3)