Restaurant

Monthly Bank Loan Repayment

Paying the monthly installment on a bank loan taken to open the restaurant.

Account NameTypeDebit ($)Credit ($)
Notes Payable (Principal)Liability (-)1,500.00-
Interest ExpenseExpense (+)300.00-
Cash / BankAsset (-)-1,800.00

💡 Accountant's Note

Every loan payment is split between reducing the principal debt and paying the cost of borrowing (interest). Only the interest is an expense.

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