Hello Frnds.... I have to ask 1 a/c entry about Finance ltd
Entry is :- XYZ co . is finance for Truck , finance amount rs. 1172000/-, + prepaid interest amount rs. 330730+cash payment rs. 29000.
Total amount finaced by XYZ CO. rs. 1531730/-
i have to do entry of installment rs. 32000 (principal 25000+interes 7000) .
how could i do ?? because i have debited pre-paid interest.before ??
pls...........................help !! thanx in advance
Ur query is not clear..........How u have debited prepaid interest at the time of financing & what does this amount of prepaid interest represent??
What I can make from your query is that cash cost of truck is Rs.1201000 (out of this you paid 29000 as down payment) and total interest payable is Rs.330730. Entries for this should be:Truck A/c Dr.1201000 to Vendor 1201000. Vendor Dr. 29000 to Bank 29000. At the time of paying instalment entry should be: Vendor A/c Dr.25000 Interest A/c Dr.7000 to Bank 32000.
What I can make from your query is that cash cost of truck is Rs.1201000 (out of this you paid 29000 as down payment) and total interest payable is Rs.330730. Entries for this should be:Truck A/c Dr.1201000 to Vendor 1201000. Vendor Dr. 29000 to Bank 29000. At the time of paying instalment entry should be: Vendor A/c Dr.25000 Interest A/c Dr.7000 to Bank 32000.
| Originally posted by :Jag Bhushan Sharma | ||
| " | What I can make from your query is that cash cost of truck is Rs.1201000 (out of this you paid 29000 as down payment) and total interest payable is Rs.330730. Entries for this should be:Truck A/c Dr.1201000 to Vendor 1201000. Vendor Dr. 29000 to Bank 29000. At the time of paying instalment entry should be: Vendor A/c Dr.25000 Interest A/c Dr.7000 to Bank 32000. | " |
Agree with Mr. Sharma
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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