CCI Online Coaching    |    x

Car Loan A/cing entry

Chartered Accountant


A co. has bought a car as their asset this year on loan.I m getting problem how to make entries in the tally to show the effect on loan a/c & Interest on loan a/c.

Car value- Rs.1910000

LOAN- Rs.1500000,

Down payment- Rs.605000

EMI- Rs.47477 for 36 months

Interest- 9.25% p.a

Pls. guide me with proper entries for current year & when making entries for EMIs from next year.


CA Final

Mr.Ramikhalsa, i guess the info. provided by you in regard to EMI per month is wrong. It must be Rs.47874.00.

When loan is received:

DEBIT            Bank  A/c.       15,00,000.00

CREDIT         Loan A/c.        15,00,000.00

When you repay your instalment:

DEBIT        Loan A/c.        With Principal amount contained in the instalment

DEBIT        Interest on Loan A/c    With the amount of Interest in the instalment

CREDIT     Bank A/c.                   With the whole instalment amount.


Total likes : 1 times


Dear Sir,

How to pass car loan pre close entry



Your are not logged in . Please login to post replies

Click here to Login / Register  


Search Forum:

× Online Coaching My Enrolled Courses
Articles Forum News Experts Exams Share Files Income Tax Accounts Career Corporate Law Service Tax Video Judgements Rewards Top Members Events Albums Find Friends Featured Feed Scorecard Bookmarks Mock Test Poll Notification Knowledge Finder Coaching Institutes Trainee Corner Jobs
close x