Q. What entries should be made for mortgage and interest only repayments? For info I use GnuCash.
Situation: I have an interest (repayment) only mortgage of, say, £50,000. They added their fees to the loan bringing it to, say, £50,500, and sent me the £50,000.
I have shown £50,000 as...
--- (increase) liability (mortgage) a/c
--- (decrease) assett (bank) a/c
But how should I show their fees of £500?
--- (increase) in liability (mortgage) a/c
--- (decrease) ? (what type of a/c?)