Bond Processing

[AMGOTTS]

I have a pastel question I am hoping someone could assist me with.

My company has taken out a bond.

I would like to open a loan account and process the bond amount to that loan account.

I have opened up a loan account under long term liabilities GL.

I am not sure how to continue processing this bond, as the Bond was paid out directly to the bank account, if I CR the amount under the loan account what would I debit as the contra account?

Many Thanks

[Andromeda]

The effect of your entries are a debit (receipt ) to the bank account, and a credit to the long term liability.

Repayments of the bond account will be a credit to bank account and a debit to the long term liability.

Don't forget to accrue the interest.