Intercompany loans

Oct 7, 2019
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my company (a school) opened up a branch,the new school needed a loan from the bank but they wouldn't get the amount required so the main school borrowed on its behalf.the new school pays its instalment to the main school's bank account when its due.this loan will take about 7 years.what are the accounting entries for both the main school and new school when the loan is deposited on the new school's account and when the new school is paying its installment to main school.remember the new school pays both intrest and principal on its loan.


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