Loan taken for vehicle

This query is : Resolved

Daniyal (Querist)
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16 March 2013 Cost of Acquisition 137,000
Less: 20% Downpayment 27,400
Loan Received in Bank Acc 109600
Interest Payable on Loan Receipt for the period of 36 Months - 14738.25 ( as per Repayment Schedule on Reducing Balance Method)
Amortization Schedule for 1st Year

Date Openig Balance Interest Principal Total Instalment Closing Balance
5-May-12 109,600.00 753.50 2,696.50 3,450.00 106,903.50
5-Jun-12 106,903.50 759.46 2,690.54 3,450.00 104,212.96
5-Jul-12 104,212.96 716.46 2,733.54 3,450.00 101,479.42
5-Aug-12 101,479.42 720.93 2,729.07 3,450.00 98,750.35
5-Sep-12 98,750.35 701.54 2,748.46 3,450.00 96,001.89
5-Oct-12 96,001.89 682.01 2,767.99 3,450.00 93,233.90
5-Nov-12 93,233.90 640.98 2,809.02 3,450.00 90,424.88
5-Dec-12 90,424.88 621.67 2,828.33 3,450.00 87,596.55

Closing Balance of Bank is 87596.55

but as per my accounting Ledger Balance Shows 96738.25

Accounted entry as follow
Bank A/c Dr 109600.00/-
Prepaid inTerest on Loan A/c Dr 14738.25
Loan Payable A/c 124338.25

then deduct every month 3450.00 as per above interest and principal schedule.

Can any one reconcile the balance n show me how to rectify the error

in Addition as per Bank Balance confirmation report there is some accrued Interest of 542.00 what kind of interest is this?

pls Help

dibnm2710@gmail.com

Vivek Hebbar

Vivek Hebbar (Expert)
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16 March 2013 Please see response to Athar's query