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How to record a company bank loan?

How to record a company bank loan?

Hello everyone, it would be amazing if someone can help me to record a company bank loan in the accounts. These are the terms of the loan: Loan Ammount £6000. Fixed Interest rate will be 13.97% per year annum. The loan is repayable with 36 instalments of £204.97 payable monthly. So, in the end total for the loan will be £7378.92. I understand that the first journal should be: 1. DR Bank Balance Sheet £6000 . CR Bank Loan Balance Sheet £6000.  What happens with the interest of £1378.92, where should i post this? The companys year end  30 June XX. First repayment of £204.97 happened in the end of June. Is it right that repayment will be CR Bank Balance Sheet £204.97 and DR Bank Loan Balance Sheet £204.97, so what about interest than?   How the figures in the balance should look like at the end of 30 June XX? Thank you in advance!!

 

 

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