Buying assets with a finance agreement

[turboultra]

I've just bought a phone on finance. Suppose I intend to keep it for two years, and the monthly repayments are for twenty months. How should I record it in tr.en.d? Should I record it as a recurring monthly expense, with a one month period of influence? Or should I create a new account to represent the loan, add the full cost of the phone as an expense to the loan account (with 2 year period of influence), and then set up a recurring movement of funds into the loan account to represent the repayments?

[shortki]

The second option is preferable, it captures the essence of the deal more precisely. It is not necessary to open a new account for each such case, it is quite possible to have a general account that keeps all the small loans.