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Created by AgExpert Support
Created on Jul 19, 2022

Disqus Agexpert Accounting Questions Archive

how do you enter a capital asset purchase financed by the bank with a down payment

  • ADMIN RESPONSE
    Feb 10, 2025

    Good afternoon Mandy!

    Have you entered anything yet, including the down payment? This is actually the key to the transaction - the whole thing can be entered with the withdrawal used for the down payment.

    I will look something like this:

    https://uploads.disquscdn.c...

    There will, of course, be a bit more to it depending on your situation. There might be a loan admin fee to expense, for example, that you can include as a part of the transaction. But in general, this is how it would work - the down payment is your total, your will have one line purchasing the capital asset at its full purchase price, and you will have one line with the amount of the loan proceeds you need to track.

    If you have further questions, or want to provide some specific numbers here, please let me know and I will assist in any way I can!

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