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Term loan payment entry

Accounting Entries 16873 views 4 replies

Dear sir,

 

We have taken Term loan from Andhra bank for 2.65 cores and utlized.  we are create  entry with TAlly  as Term Loan with Andhra Bank   Under group Bank OD A/c. present that ledger balalnce is showns 2.65 crores Credit balance.

But now we are geting Cash Credit limitsfrom Andhra Bank 2.00 Crores, we are create a ledger as Andhra bank CC A/c Under group Bank OD A/c

Now our bank every month debit from our CC A/c and  transfer  to 6.00 lakhs amount to Term loan a/c for EMI & Interest( EMI-315000/- + Interst on TL 285000/-)

So  now we are try to account this entry  in Contra, but Termloan Interest ledger(Indirect Exp U/g) is not avaliable in contra mode.

second thing is we are try to payment mode , here also in Debit section Term loan with Andhra Bank Ledger (U/g Bank OD A/c) not shown

so pls how to account this entry

pls send me  k_venkat_2004 @ yahoo.com

9848824141

Venkat

Ongole

Replies (4)

Term loan principal is debited to Term Loan Account and interest is debited to Interest on Term loan being an expense

for Interest on Term Loan

Int on Term loan dr

to Interest Payable on term loan

on payment of Interest

dr Interest payable on term loan

cr Bank a/c

For Principal Payment

Dr Term Loan

cr Bank

 

 

What will be the entry in the case of cash credit account? Please suggest Tally Entry in the case of: Interest on Cash Credit Account

 

debit interest on cash credit and credit the bank account

Is this entry shown in contra or journal in tally for payment of term loan and interest from company cash credt account???

 


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