A/c entries for hire purchase flat

Please clarify does interest includes in cost of flat. If interest is not include mentioned the amount of each installment.

Thanks for your reply.

Please find the attached file for details....

Entry of First Year.

At the Time of Allotmant

1. House property a/c  Dr.       18,95,000

   To Government Authorities 18,95,000

2. Government Authorities Dr.   5,68,500

     To Bank                                5,68,500

At the time of Ist Instalment

3.Interest a/c Dr.                          79,590

   To Government Authorities       79,590

4.Government Authorities Dr.    1,62,496

    To Bank                                  1,62,496

At the time of IInd Instalment

5. Interest a/c Dr.                          74.616

   To Government Authorities        74.616

6. Government Authorities Dr.   1,57,522

     To Bank                                 1,57,522

Entry of interest due and payment of instalment will be passed in each financial year.

Thank you Puneet Ji, one more query

the flat is not the part of my business, its just for investment purpose. Should I capitalised both the amount, Principal and Interest in books, if yes, please let me know the accounting entry.

Thank You

You can not capitalised  the amount of interest.