Treatment of emi against term loan

No, it is incorrect, the entry should be splitted into Interest and Principal payment. 

 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. 

Bankers will provide the loan repayment schedule. Please follow the same.

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..
 

Ask to bank to provide detail of all emi ( Principal + Interest )

Term loand     Dr.

Interest          Dr.

    To bank 

thank you everybody for your kind help.

Regards.