344 - Mortgages Payable

Liabilities

Long Term Debt

Synopsis

Account 344

Debits

Credits

  1. All payments on the principal amount of mortgages included in this account.

 

  1. The principal amount of long-term loans, secured by real property used in the retailer activity.

 

Remarks:

The balance in this account represents the amount due on notes secured by mortgages on real property (land, building and building equipment) owned and used by the retailer, which are due and payable beyond one year from the original loan date.

Mortgages on property other than that used in the automobile business should be recorded in Long Term Debt Owners/Other – Account 347.

This is a control account which should be supported by a subsidiary record, usually a copy of the mortgage and/or land contract, with a payment and interest schedule attached.

Interest on real estate mortgages and land contracts should be recorded monthly and charged to Interest – Real Estate Mortgage Account 86.

The portion of mortgages and/or land contracts due and payable within the succeeding twelve months from the date of the balance sheet date should be included in Current Amount – LTD Account 315. 

Note: