Gurmet Siingh (Chartered Accountant) (413 Points)
18 March 2008Hi,
A co. has bought a car as their asset this year on loan.I m getting problem how to make entries in the tally to show the effect on loan a/c & Interest on loan a/c.
Car value- Rs.1910000
LOAN- Rs.1500000,
Down payment- Rs.605000
EMI- Rs.47477 for 36 months
Interest- 9.25% p.a
Pls. guide me with proper entries for current year & when making entries for EMIs from next year.
Thx
M.Sriram Shenoy
(CA Final)
(814 Points)
Replied 18 March 2008
Mr.Ramikhalsa, i guess the info. provided by you in regard to EMI per month is wrong. It must be Rs.47874.00.
When loan is received:
DEBIT Bank A/c. 15,00,000.00
CREDIT Loan A/c. 15,00,000.00
When you repay your instalment:
DEBIT Loan A/c. With Principal amount contained in the instalment
DEBIT Interest on Loan A/c With the amount of Interest in the instalment
CREDIT Bank A/c. With the whole instalment amount.
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