What is theo balance - bank branch audit

Theo balance means theoratical balance.  This balance is computed by the system on the basis of EMI payable by the borrower and how much amount may be outstanding in a borrower account on a particular day.  For example, in a term loan account Mr x got Rs. 10 lakhs loan with EMI of Rs. 10000 p.m.  As on 31.3.14, he had to pay 10 instalments i.e., Rs. 1 lakh.  The system will compute the theo outstanding balance as Rs. 9 lakhs + inter.  If the actual out standing amount is less than the theo balance, the account is regular and if it is more than theo balance, the account is irregular.