Thanks for taking time to read by thread. I am confused on the double entries of the investment
Looking at a Management Buy Out say for 10,000
the loan for this will go against the company
Debit Bank - 10,000
Credit Loan - 10,000
The repayments will be
Credit Bank 250
Debit Loan 200
Debit Interest Charges 50
But when the payment goes to the current shareholders what double entry is for this, is it: -
Debit P&L 10,000
Credit Bank 10,000
or can i apportion the payment on the P&L over time?
Looking at a Management Buy Out say for 10,000
the loan for this will go against the company
Debit Bank - 10,000
Credit Loan - 10,000
The repayments will be
Credit Bank 250
Debit Loan 200
Debit Interest Charges 50
But when the payment goes to the current shareholders what double entry is for this, is it: -
Debit P&L 10,000
Credit Bank 10,000
or can i apportion the payment on the P&L over time?
