I have taken a housing loan. As suggested by you, I have created a liability “Housing Loan” for repayment of the principal portion on a monthly basis. The repayment of interest component is created under the expenses. It is a good suggestion made by you and the same works well. The total loan taken is captured in the liability “Housing Loan” with a negative sign. The repayment of the principal component is captured under the liability “Housing Loan” - hence the system shows a reduction in the total “Housing Loan” liability as when the principal component is captured on a monthly basis in the system. However, the House (property) is a fixed asset. How do I capture the cost of the house (which is nothing but the principal component being repaid on a monthly basis) under fixed assets.
See the Guide at http://guides.manager.io/businesses/fixed-assets/acquisitions.