Double entry for purchase building

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)

So? What is your question?

You must watch my free lectures on double entry bookkeeping where the entry is explained. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.