Journal Entry for the money used a downpayment for Business

That depends on it you are purchasing a company without any fixed assets.  If you are just buying the company without fixed assets, made a journal entry.  Line 1) Debit Investment in ABC, Inc (an asset account) $65K.  Line 2) Credit Owner's equity for $40K.  Line 3) Credit Note Payable $25K (a liability account).  

If the company has fixed asset, you need to determine the value of the fixed assets.  The recording of the entry is a bit different.  Line 1) Credit fixed assets (let's say $10k).  Line 2) Credit Owner's Equity $40K.  Line 3) Credit note payable $25K.  Line 4) Debit Goodwill (an asset account) for $55K.  

You can amortize Goodwill.  Consult your tax preparer.

@Rheg30 

Was this an asset sale?  If so, the previous post is partially correct.  You do need to know the allocation of the purchase price as mentioned because both you and the seller need to report to the IRS the breakdown of what you assets you bought for $65K (see IRS Form 8594).  If you haven't done this with the seller yet, you need to.  In general, what's good for the buyer is bad for the seller and vice versa.  You would debit the assets purchased (fixed assets, inventory, goodwill, non-compete, A/R, etc.) and credit your bank account for the $40K down payment and a loan payable liability account for the seller carry.  Nothing posts to equity at this point and nothing posts to Investment in ABC Corp.