Loan Transaction

How to record Loan Transaction?

Accounting Questions, Banking, Bookkeeping, Common Questions, Expenses, General Accounting, QnA5 Comments

One of the most popular methods of financing is borrowing. Loans can be short term, long term, secured, or unsecured and should be recorded accordingly. It is important to keep track of the principle and interest amount, and record them respectively in books for correct accounting. Classification is vital as ‘interest’ paid on loan is…