Pre emi entry

pre emi is Prepaid Expenses. so I think it's debited against loan account credited

Its basically... Charges collected for file processing etc... By lenders... Therefore it should be capitalised.. If it is not part of total loan repayment amt...
Thank you

THANKS FOR REPLYING..BUT HERE WE HAVE  PROSESS CHARGES ALSO AS WELL AS PRE EMI.

PROCESS CHARGES WOULD BE DEBITED IN P&L

PRE EMI WOULD BE CAPITALISED

I THINK SO 

No Lakshmi... Both would be capitalised.. Since. These charges are directly... Associated with... Acquisition of fixed asset..
I think, now you got the criteria... For capitalisation ...

Thank you

Since Processing fee are generally deducted from loan amount and hence I believe no entry for processsing fee. Only in narration we can write such amount get deducted from loan amount as processing fee. About Pre EMI it should be capitalised.

Pre emi is just an Interest component...so interest on loan a/c should be debited

Pre EMI charges appears expenses claimed by bank on account of valuation of property and legal opinion because the loan in question is Property mortgage loan. So in my opinion it should be debited to P &L if paid separately. If EMI is fixed including these expenses then it will be capitalised. Jasbir Singh

Pre EMI is to be treated as current asset. Whenever it becomes due interest debited in p&l as expense and adjusted against loan. Expense related to loan debited in p&l