Originally Posted by
Andromeda
Presumably you debited Motor Vehicles at cost, credited HP Creditor with the full purchase price. Then you debited HP creditor and credited bank with the monthly repayments? That would have been correct given your understanding at the time.
To correct it you would need to reverse the Motor vehicles / HP creditor entry, so at this stage Motor vehicles = nil and HP creditor = debit total equal to all monthly payments.
Now credit all monthly repayments to the HP creditor account and debit Ben loan account.
Future payments you will debit Ben loan account and credit Bank.
Did you like this article? Share it with your favourite social network.