Debt and my profit/loss?

Discussion in 'Accounting and Taxes' started by chaddock, Nov 16, 2018.

  1. chaddock

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    Nov 16, 2018
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    Trying to see how I need to view my payments towards a $100,000 cash loan as an example. If I pay $10,000 each month for 10 months towards a $100,000 cash loan and that original loan went to pay off my AMEX bill for example. The original Amex bill charges came from cost of goods and show up in my expense report and in my profit/loss reports. Those original charges for example were charged and applied to my amex bill and profit loss in jan. But if I am paying $10,000 in November towards that loan, do I view that $10,000 as an expense towards my profit loss for November or should I not add that in because I had really already added in that $10,000 in January when i purchased the cost of goods. In November, I should only be adding in any interest part of that $10,000 and not the amount that goes to the principle of the loan? So this November when I run my profit loss, I should leave out that $10,000 payment.

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