A company pays emi of Rs 75000- 60000 towards loan and balance towards interest. Account for the payment
5 Replies
CA ABHAY GUPTA
(Practice)
(3235 Points)
Replied 23 October 2021
Dr interest on loan 15000
Dr Loan account 60000
Cr Bank account 75000
(being EMI paid)
Dr Loan account 60000
Cr Bank account 75000
(being EMI paid)
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 23 October 2021
This is complex. Loan, if you took it n the middle of the year’s, you can pay 6 months clear out the current liabilities and show long term liability. If it is annual emi, then
take the loan amount and divide it by last year’s annuity factor which will give you interest and principle separately.
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 23 October 2021
I didn’t mean emi, lol an old habit. I meant repayment period
CA. Sourav Sarkar
(Chartered Accountant )
(24588 Points)
Replied 23 October 2021
Agree with abhay ji
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