Handling of Liabilities

[Mike Kobler]

How does one handle loans/mortagages, etc??

Right now, I have a one time expense for the start of the loan, and then
make transfers to the liability account for each payment.  (The interest
goes to a seperate).  But, this payment doesn't show up on a Profit and
Loss report, since it is not an "expense".

Is this the way it's typically done??  Or should I make the transfer to
the liability account and reduce the liability through payments to an
expense account??  

Just some info on how others handle things like this would be most
helpful!!

thanks
mike

ps. I wish i had never sold that book from the accounting class I took in
college!!

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