The entry to record an installment payment on a mortgage loan is

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When an installment payment is made on a mortgage loan, a portion of it goes towards paying down the principal amount of the loan while the remaining portion is credited to interest expense. Therefore, we need to debit the mortgage payable account to reduce the outstanding balance of the loan and credit the interest expense account to recognize the interest portion of the payment. Finally, we need to credit cash to show that we have made the payment. Hence, the appropriate entry to record an installment payment on a mortgage loan is Mortgage Payable Interest Expense Cash.

The Entry to Record an Installment Payment on a Mortgage