South Africa Allocation query

[Louisa]

I am not accountant and have only basic bookkeeping experience.

I would like to find out what the correct allocation would be for a finance provider?

The company I work for received a 'loan' of a certain amount as backup for a possible future purchase of stock. An instalment is paid daily to cover this amount received.

As a balance sheet account, would this fall under Long Term Liability or Instalment Sale Creditor or anything else?

Thanks

 

[Fidget]

Depends on the loan agreement.