I have done this so many times in the past and my brain is fried to the brim with all the accounting documents at the moment.
When I do the journal for the property home loan the entry I have is:
Land and Buildings @ Cost Debit with R1,4million
Long Term Liabilities Credit with R1,4 million
I am handling the home loan bank account as a seperate bank account on Pastel. Now where my confusion starts.
When the installment goes off the transactional bank account it will be a credit in that GL acc and a debit on the long term liabilities?
Now I have the interest that will be added on the home loan account every month. How do I do the entry for that? Should I rather handle the whole Home Loan account by journals and then just make sure the payments go toward the liability account?
Hope you guys make sense of what I'm trying to say and ask?