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MakingCentsBookkeeping
Level 2

How do I account for building improvement construction loan?

I have a client that has purchased a building, they will be making some improvements on the building.  I am unsure how to correctly record the construction draws during the remodel phase.  My thought is to add a fixed asset account for the Construction draws and then offset that when the building is done to the fixed asset building account.  If that is correct how do I account for the loan on the liability side?

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