Good day Deepesh, 

When transactions affect the bank, cashbook processing will take place. Interest paid and bank charges can also be processed using a cashbook processing method. 

We strongly advise that you confirm with your accountant or bookkeeper how the transaction should be reflected and how the loan account will be affected. 

Please refer to the document attached for further assistance.

Please verify or reply and let us know if the advice or suggestion provided was helpful.

To verify an answer, simply go to your post and click "More" > "Verify Answer." 

Kind regards,

Journal to Process when Purchasing an Asset.pdf