We've just bought a commercial property and have a mortgage on it. I understand the double entry for the loan itself but am unsure about the associated fees. All of the solicitor fees, security fee, valuation, and arrangement fee - what do I do with these? Are they added onto the loan creditor, or are they expensed to the P&L?
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Legal costs - added to property cost
It is common practice to add legal fees, etc. incurred on the purchase of an asset to the cost of the asset concerned.
Agree with the above except in relation to the arrangement fee (if by that you mean the fee for arranging the loan). The loan arrangement fee is part of the cost of obtaining the finance, like the interest you pay on the loan will be, and you account for it accordingly. You will probably need your accountant to do the calculations for you.