Adjustment of Interest on loan

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Adjustment of Interest on loan
ASIF EQBAL • 16 July 2019
Loan Amount ₹594000
ROI 19.25%
LOAN PERIOD 4 YRS
NO OF PAYMENTS PER YEAR - 12
DATE OF LOAN - 18/03/2019

can Anyone explain the adjustment of interest on loan for the F. Y 2018-2019??
At what amount loan is recorded in B/S

THANK YOU
Replies (3)
loan is given by company to individual.
you r asking from whose side??
that means company side or individual side??
what is monthly installment they are paying??
am asking from the view point of individual... and
the monthly installment is 17840...
am question is.... whether intt on loan is recorded in P&L or not if recorded what is the amount

when the installment paid

Financial Instituation a/c dr   1000

           to Bank a/c                   1000

 

Interest entry

Interest A/c                      dr    100

             to Financial Institution a/c

Principal outstanding will reflect in balance sheet

Interest will be recorded as indirect exp in p/l account

 

Principal and Interest classification you can get from Bank/ NBFC where you got the loan.

 

 

 

 

 


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