JOURNAL ENTRY OF TRUCK PURCHASED ON LOAN

This query is : Resolved

MANOJ (Querist)
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07 September 2010 CAN ANY ONE TELL ME ALL JOURNAL EFFECTS FOR PURCHASE OF TRUCK ON LOAN.
INTEREST CALCULATION BASED ON IMPLICIT RATE OF RETURN.

DETAIL:
TRUCK - PARTY BILL VALUE: 781512
PARTY DISCOUNT ON BILL: 55093
LOAN RECD FROM FINANCE COMPANY : 650000
INITIAL PAYMENT DIRECTLY TO PARTY: 76419
PAID TO FINANCE COMPANY FOR INSURANCE & SD: 26680
TOTAL AMOUNT REPAYABLE TO FINANCE CO IN 47(X 17150) INSTALMENTS: 806050.
TOTAL INTEREST PAYABLE IS: 156049

ESPECIALLY I REQUIRED EFFECT OF INTEREST ON LOAN ONLY-

Nischint Kumar Somani

Nischint Kumar Somani (Expert)
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07 September 2010 you have to pass the entries as per follow:
ist entry

truck A/c(under fixed assets) Dr 753099.00 (650000+76419+26680)

to party (from where truck purchaed) 726419.00
To cash/bank (insurance co)26680.00

2nd entry

party account Dr. 726419

to loan company 650000.00
to bank/cash (from where truck purchaed) 76419.00

and at the time of payment of installment amount

insurance co account Dr (principal amount)

insterest account Dr (interest amount)

to bank 17150.00

Message likes : 1 times

MANOJ

MANOJ (Querist)
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07 September 2010 thank u very much, my doubts are cleared now...
thanks

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