Accounts adjustments for loan moratorium period

HI,

I'm planning to apply for a business loan. In order to do, that I need to prepare project report along with future P/L A/C, Cash Flow Statement and Balance sheet. I'm planning to apply for Rs.12 lacs Loan. The loan would have 18 month's moratorium period. And that is where I'm confused. As per the PNB EMI calculator (please find the attached Excel file) after 18 months of moratorium period the principal amount becomes Rs.1482165.80. But I am taking a loan of Rs. 12 lacs. So, practically there is a difference of Rs. 282166. How should I adjust the Cashflow statement and balance sheet so, asset and liabilities matches. If I remove all entries of loan the assets and liabilities sides matche with each other. But if I add loan with moratorium period, it does not. I would really appreciate if anyone can assist me.


Attached File : 2841414 20190629001019 emicalculator.xls downloaded: 172 times
Replies (2)
interest should be served during moratorium period to tally the balance sheet.
in this condition, after 18 months also, only principal amount will be shown on liability side as of first day.
and then the repayment period will begin.
you should capitalize the interest during construction period(till asset is ready for intended purpose) and balance interest should be expensed in profit and loss account.

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