What is the accounting entries for purchasing a car on installment basis?

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1244355

2026-03-08 15:30

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Credit to Liabilities for the amount of the loan.

Credit to liabilitites for the amount of interest on the amount of the loan.(this can be entered monthly to keep better track of)

Debit to cash for the amount of the payment made. (this amount should be equal after the payments are completed to the addition of the loan amount and interest.)

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