This is my situation: Purchased a piece of land and building for 1000 dollars, current owner paid a 100 dollars towards this, I am trying to figure out what to do with the 100
dollars, financed thru a secured loan 900 dollars...
Would my entry be :
FA Debit 1000
NP Credit 900
Capital Credit 100
I know this is basic but I feel like I am missing something, could someone assist me with the entry?
Your asset is Land debit 1000
Liability Credit Loan 900
Credit Miscellancous Revenue 100 (Previous owner paid)
Credit If you company paid then 100 to equity
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