Real Estate
Mortgage-Financed Property Purchase
Buying a building with a 20% down payment and an 80% bank mortgage.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Building (Fixed Asset) | Asset (+) | 1,000,000.00 | - |
| Cash / Bank (Down Payment) | Asset (-) | - | 200,000.00 |
| Mortgage Loan Payable | Liability (+) | - | 800,000.00 |
💡 Accountant's Note
The full fair value of the building is recorded as an asset. The down payment reduces cash and the remaining balance becomes a long-term liability to the bank.
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