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Home Loan Accounting

Bhavesh (Accounts) (152 Points)

21 January 2024

Dear friends, I want to know related to Home Loan, how it is calculated and Entry of the same. In case of prepayment how it is accounted. also if Home loan taken as "Fixed Rate" and in "Floating Rate" how it is calculated and accounted. Also one can share the schedule of home loan excel sheet. please provide an appropriate answer.

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10 Replies

Yasaswi Gomes new (Finance ) (4484 Points)
Replied 21 January 2024

https://emicalculator.net/fixed-rate-or-a-floating-rate-loan/

this is useful info

Sharath chandra (Accountant) (1215 Points)
Replied 21 January 2024

want to know related to Home Loan, how it is calculated and Entry of the same. In case of prepayment how it is accounted. ----- Like any other loan.

also if Home loan taken as "Fixed Rate" and in "Floating Rate" how it is calculated and accounted.----- Accounting doesnt care if you do it in fixed rate or floating rate. The interest component is taken same way in both of them.

Also one can share the schedule of home loan excel sheet. please provide an appropriate answer. --- what do you want exactly ?

RAJA P M ("Do the Right Thing...!!!") (127179 Points)
Replied 22 January 2024

@ Mr Bhavesh,

Is this accounting in Your personal books...? or Business books...??

Yasaswi Gomes new (Finance ) (4484 Points)
Replied 22 January 2024

Prepayment is in the books of owner and I think it's personal home loan cause companies don't need homes

RAJA P M ("Do the Right Thing...!!!") (127179 Points)
Replied 22 January 2024

Ohhh God... Its very danger...

1 Like

Yasaswi Gomes new (Finance ) (4484 Points)
Replied 22 January 2024

Lol the link i gave has calculator which includes advance, prepaymnts, brokerage etc.

RAJA P M ("Do the Right Thing...!!!") (127179 Points)
Replied 22 January 2024

Better to get loan repayment schedule from any of Your friends, Neighbour or any others...

After that, check the schedule with this calculator...

I don't exact proverb...

But, please come out from a **circled horse...

sabyasachi mukherjee (26089 Points)
Replied 23 January 2024

Annuity calculation is similar to this.

Yasaswi Gomes new (Finance ) (4484 Points)
Replied 23 January 2024

No. Even interest rate is divided by months. No where it resembles annuity factor formula. EMI = [P x R x (1+R)^N]/[(1+R)^N-1]. Annuity is loan amount by annuity factor. But the denominator is the same. 1-(1+r)^n/r became n-1 but what happened to r.