Bapun Dasgupta (student) (133 Points)
29 June 2016A Partnership Firm has been granted a certain amount of Term Loan. The Firm pays regular EMIs which are debited in the bank statement. . Should the accounting entry be as follows :
Term Loan A/c. .........Dr (Amount of EMI)
To Bank A/c.
Please advise.
regards.
Akhil N S
(5 Points)
Replied 29 June 2016
No, it is incorrect, the entry should be splitted into Interest and Principal payment.
Bapun Dasgupta
(student)
(133 Points)
Replied 29 June 2016
Thank you very much Sir. If you can help me with the following :
Term Loan sanctioned by Bank for the FY 2015-16 : Rs. 2,95,000
Amount availed upto 31.3.2016 : Rs. 2,25,000
Margin : 15%
Rate of interest : Floating (9.70+1+0.25)% ; i.e. 10.95 % at present.
EMI : To be repaid in 84 EMIs of Rs. 5084/- each.
EMIs debited in bank statement ( as a whole, without splitting between Principal & Interest ) as follows :
1 Feb., 2016 : Rs. 3865
29 Feb. 2016 : Rs. 3875.96
31 Mar. 2016 : Rs. 3865.48
Loan Sanctioned : December, 2015.
How much of each EMI sholud be debited to Principal (Term Loan A/c.) and how much should be debited to Interst on Loan A/c. ?
Waiting for your kind reply.
Regards.
mohammad rasool baig
(Management Consultant)
(1026 Points)
Replied 30 June 2016
Bankers will provide the loan repayment schedule. Please follow the same.
Rammi_RP Rawat
(Accountant )
(386 Points)
Replied 30 June 2016
follow with your bank repayment schedule..
Instl. Amt. 11375 (example )
Pass Entry
Dr. Tream Loan A/C ......8314 ( principal )
Dr. Intrest A/C.............. 3061 (intrest )
Cr. Bank A/C................11375 ( Instl. amt )
Kindly note every time ( posting ) principal amt and interest amt. will change as per schedule..
subhash kumar jha
(PROFESSION)
(445 Points)
Replied 30 June 2016
Ask to bank to provide detail of all emi ( Principal + Interest )
Term loand Dr.
Interest Dr.
To bank
Bapun Dasgupta
(student)
(133 Points)
Replied 30 June 2016
thank you everybody for your kind help.
Regards.
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