An unsecured car loan of Rs 20 lac was obtained on 31.12.2012 on which interest payable was Rs. 296800. The installments were payable in 36 monthly installments of Rs 63800 each. My query is how the entries will be made in the books and how the loan and interest shall be presented in financial statements for the year ended 31.3.2013?
15 July 2013
There are two componants of repayment. One is Principal and the other is interest. Now, if you are making the payment. Divide interest by 36 and principal by 36.
On payment debit interest on car loan Debit the fiancer if it is bank then bank crdit your bank account.
15 July 2013
There are two componants of repayment. One is Principal and the other is interest. Now, if you are making the payment. Divide interest by 36 and principal by 36.
On payment debit interest on car loan Debit the fiancer if it is bank then bank credit your bank account.
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