Hello,

I am trying to record the journal entries for taking a loan
and refinancing it into two new loans. How would I show the
closing loan and the opening of two new loans?

Thank you for your help!

Answer Posted / nayan chauhan

For taking the loan from bank entry would be :-
Bank a/c dr.
To bank loan a/c
And refinancing it in to new two loan :-




Old bamk loan a/c dr.
To new bank loan 1 a/c
To new bank loan 2 a/c




Only two new loan will be shown in the liabilities side of
B/s.

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