Car Loan A/cing entry

Gurmet Siingh (Chartered Accountant) (413 Points)

18 March 2008  


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.