Construction
Construction Loan Repayment (Principal + Interest)
Making a monthly repayment on the project finance loan after the construction phase.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Construction Loan Payable (Principal) | Liability (-) | 100,000.00 | - |
| Interest Expense | Expense (+) | 15,000.00 | - |
| Cash in Bank | Asset (-) | - | 115,000.00 |
💡 Accountant's Note
After completion, the construction loan transitions to a term loan repaid over the agreed schedule. The interest portion is expensed as a period cost.
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