I’ve been asked by a client to do the bookkeeping transactions for their property that they rent out. Please confirm how I record the monthly payments on their bond. The property value is R1 million – the outstanding bond amount is R45000 and the monthly bond payments are R600 per month.
I can’t answer this question without seeing the account statement. The R600 paid could include various items for example, interest and/or insurance. Only the statement can indicate the values and how the R600 needs to be allocated.
Hope that helps!
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