intest calculation

[Former Member]

when i run intrest calculation every month in f.52, why this intrest is giving credit to loan account, this intrest is adding to loan a/c suppose for eg.we hav taken loan for 1lac and intrest for the month is 834.00 this int is giving credit to loan a/c

and the loan a/c is Rs.1lac+834.00 , when i repay 1lac, 834 will be shown as balance but it shud not be like tht coz we paid complete loan a/c, why?

thank you

keerthi

[Former Member · Accepted solution]

Hi...

I think already u understand VR Solution...

When u execute F.52 the system is calculating interest and posting the trasaction to Interest & Loan accounts (i.e.) Interest Account Dr To Bank Loan A/c.

That means u have a liability to pay the balance (loan+interest..... )

When ever u r making payment to Bank the transaction would be

Bank Loan A/c Dr To Savings Bank or Cash A/c

Hope so, it will clarify ur doubts..

Regs,

Bhaskar

[Former Member]

Hi Keerthi

The interest is posted to Loan ac as well as Interest ac.

So after clear the interest, the loan ac also clears

VR