Kindly help to record this Vehicle purchase

2
  1. Create the vehicle as a fixed asset.
  2. Create a liability account for the loan (or choose one you already have).
  3. Record receipt of proceeds of the loan into your bank account, if they come to you that way.
  4. Record purchase of the vehicle with a combination of payment and journal entry, depending on how the loan proceeds are applied. See Purchase fixed assets | Manager.
  5. Interest has nothing to do with the purchase. It is posted to an expense account as you make monthly payments against the loan. Those payments will be posted partially to the loan liability account and partially to interest.
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