Bill of exchange in TRM
My customer has the below cycle.
If for example the company made a contract with the bank for loan (Interest rate instrument - 55A) with 1,000,000 for 5 years and the interest for the whole contract is 200,000.
The bank then make the customer sign a bill of exchange for the whole amount 1,200,000.
How to record that on the G/l level if the TBB1 transaction only book the below entry at the beginning of the contract
Dr. Bank 1,000,000
Cr. Notes payable - Loan 1,000,000