I am preparing the accounts for a client, using his previous accountants bookkeeping.
He has a HP agreement on which he pays installments of £210 per month.
During the financial year, the previous accountant had done only the following entries each month with regards the HP contract:
Dr Trade Creditors (finance company) £210
Cr Bank £210
I know that I need to somehow account for the interest portion of things......what is the double entry required? I am going round in circles....again, another simple Q but I'm confusing myself just thinking about it anymore!