13 June 2019
Dear Sir, We are paying car loan EMI on Monthly basis. The total EMI have to pay Rs 198505.00 but we pre-closed the full amount. The total value is Rs.186479.00 including interest.How can i close the entry with journal entry? please Explain sir
17 June 2019
I showed in the last year Balance sheet the closing balance of business loan (principle along with interest both of Rs 198505.00) and the pre-closed amount of Rs 846479.00
17 June 2019
i think I am not asking the corect question. Anyway..... See the entry could be like this. Let us assume closing balance of loan as at last balance sheet is INR 5,00,000/- Pre close amount is INR 5,12,000/- Debit Loan 5,00,000 Debit Interest 12,000 Credit Bank 5,12,000 Please let me know if it suits your situation
23 June 2019
continuing with the above figures and assuming pre closure amount to be 4,80,000 debit loan 5,00,000 debit interest 12,000 credit bank 4,80,000 credit discount received on preclosure 32,000 (32,000 will be treated as other income)
CAclubindia
