Hi - am I doing this correctly?
Bought a new iphone on 0% credit earlier this year.
Repayments for the loan come out of the Business Current Account
I created a Purchase when I bought it - and funded it with a new loan account.
Then each month a payment comes out of the bank - and I Tag it to the new Loan account, so that account gets smaller each month.
Is that all I need to do? Or do I need to create a Purchase for each month also?
No. You “purchased” the item when you made the original Purchase entry paid from the loan account. The monthly payments are just paying down the loan, they aren’t purchasing anything further.
You may still need to depreciate the value over several years, depending how much it cost, what kind of accounting basis you use, etc. etc. - you probably need to double check this aspect with your accountant.
thanks - that’s what i thought, but appreciate you answering so quickly.