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Hello all, I am hoping that someone can help with this one.
I have a client who started trading with a large agricultural mortgage. Fees were added to this at the start. Obviously interest is added each quarter. No books have been kept as yet - I have the task of taking the bank statements and preparing the final accounts.
I have posted the mortgage amount as a liability, but how do I account for the fees? If I post them as an expense it will give the impression that those expenses were paid that year, when in fact they have just been added to the total liability. So where do I put the debit entry??
I don't want to appear ignorant, but this is my first experience of dealing with a mortgage situation. Any ideas would be much appreciated,
Many thanks
Ann
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