Home Loan Accounting

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.

Replies (10)
Quick Summary
This discussion delves into the accounting aspects of home loans, covering how they are calculated and the relevant journal entries. It addresses specific scenarios like prepayments and the differences in accounting for fixed versus floating interest rates. The conversation also touches upon the use of loan schedules and EMI calculation formulas.

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

this is useful info

 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 ? 

@ Mr Bhavesh,

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

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

Ohhh God... Its very danger...

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

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...
Annuity calculation is similar to this.

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. 

(1+r)^n−1=1−(1+r)^n  what exponential calculator can prove tha this equation is true?

 

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